UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q


                                   (Mark One)

    [X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

             For the quarterly period ended      SEPTEMBER 30, 2001
                                            -----------------------

                                       OR

    [ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

                    For the transition period from to       .
                                                     --------


                           Commission File No. 0-21444

                             AFG INVESTMENT TRUST C
                             ----------------------
             (Exact name of registrant as specified in its charter)


  Delaware                                                           04-3157232
    (State or other jurisdiction of                             (IRS Employer
   incorporation or organization)                         Identification No.)

    88 Broad Street, Boston, MA                                        02110
   (Address of principal executive offices)                        (Zip Code)


Registrant's  telephone  number,  including  area  code     (617)  854-5800
                                                        -------------------


(Former  name,  former  address  and  former  fiscal year, if changed since last
report.)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.
Yes    X  No
   -----



<PAGE>
                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                                      INDEX

<TABLE>
<CAPTION>


PART I. FINANCIAL INFORMATION:                                                   Page
                                                                                 ----
<S>                                                                              <C>
     Item 1. Financial Statements

                Statement of Financial Position
                at September 30, 2001 and December 31, 2000                         3

                Statement of Operations
                for the three and nine months ended September 30, 2001 and 2000     4

                Statement of Changes in Participants' Capital
                for the nine months ended September 30, 2001 and 2000               5

                Statement of Cash Flows
                for the nine months ended September 30, 2001 and 2000               6

                Notes to the Financial Statements                                   7


     Item 2. Management's Discussion and Analysis of Financial
                Condition and Results of Operations                                18


PART II. OTHER INFORMATION:

     Item 1 - 6                                                                    26
</TABLE>











<PAGE>

                             AFG INVESTMENT TRUST C

                         STATEMENT OF FINANCIAL POSITION

                    SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                                   (UNAUDITED)

<TABLE>
<CAPTION>

                                                            September 30,    December 31,
                                                                2001             2000
ASSETS
<S>                                                        <C>              <C>

Cash and cash equivalents                                  $    1,659,295   $   8,848,816
Rents receivable                                                  215,958         257,399
Accounts receivable - affiliate                                    88,236         424,853
Guarantee fee receivable                                                -         126,000
Interest receivable                                                   510           8,930
Loan receivable - Kettle Valley                                    77,059          77,059
Interest in Kettle Valley                                       3,743,915       4,315,263
Interest in EFG Kirkwood                                        4,042,814       3,803,949
Interest in MILPI                                               8,288,886         408,000
Investments - other                                               237,882         238,382
Other assets                                                      523,697         478,793
Equipment at cost, net of accumulated depreciation
  of $21,301,611 and $20,018,229 at September 30, 2001
  and December 31, 2000, respectively                          30,437,777      33,364,106
                                                           ---------------  --------------

      Total assets                                         $   49,316,029   $  52,351,550
                                                           ===============  ==============


LIABILITIES AND PARTICIPANTS' CAPITAL

Notes payable                                              $   23,332,484   $  26,220,794
Accrued interest                                                  185,740         344,871
Accrued liabilities                                               116,933         284,691
Accrued liabilities - affiliates                                  332,575          47,835
Deferred rental income                                             33,781          29,882
Other liabilities                                               1,596,072       1,524,803
                                                           ---------------  --------------
     Total liabilities                                         25,597,585      28,452,876
                                                           ---------------  --------------


Participants' capital (deficit):
   Managing Trustee                                                (1,158)         23,386
   Special Beneficiary                                                  -         192,938
   Class A Beneficiary Interests (1,787,153 Interests;
     initial purchase price of $25 each)                       26,057,969      25,570,164
   Class B Beneficiary Interests (3,024,740 Interests;
     initial purchase price of $5 each)                                 -         450,553
   Treasury Interests (223,861 Class A Interests at Cost)      (2,338,367)     (2,338,367)
                                                           ---------------  --------------
     Total participants' capital                               23,718,444      23,898,674
                                                           ---------------  --------------

     Total liabilities and participants' capital           $   49,316,029   $  52,351,550
                                                           ===============  ==============
</TABLE>




   The accompanying notes are an integral part of these financial statements.
<PAGE>

                             AFG INVESTMENT TRUST C

                             STATEMENT OF OPERATIONS

         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                For the three months ended    For the nine months ended
                                                     September 30,                 September 30,
                                                    2001          2000           2001          2000
                                                               (Restated)                 (Restated)
                                                               (See Note 1)               (See Note 1)
<S>                                           <C>            <C>          <C>            <C>
INCOME

Lease revenue                                 $  1,690,959   $1,768,284   $  4,941,320   $5,948,971
Interest income                                     22,425      167,801        126,411      506,033
Gain on sale of equipment                            7,634    1,409,938        121,633    1,761,928
Gain on sale of investment securities                    -            -              -       86,079
Other income                                        15,369       33,886        100,505      240,215
                                              -------------  -----------  -------------  -----------
  Total income                                   1,736,387    3,379,909      5,289,869    8,543,226
                                              -------------  -----------  -------------  -----------

EXPENSES

Depreciation and amortization                      979,590      988,601      2,943,739    3,245,629
Interest expense                                   435,032      584,146      1,550,209    1,895,192
Management fees - affiliates                        63,959       99,842        280,680      329,346
Operating expenses - affiliate                     248,468      141,247        996,652      338,833
                                              -------------  -----------  -------------  -----------
  Total expenses                                 1,727,049    1,813,836      5,771,280    5,809,000
                                              -------------  -----------  -------------  -----------

EQUITY INTERESTS

Equity loss from Kettle Valley                     (13,455)     (15,117)      (521,998)     (88,410)
Equity income (loss) from EFG Kirkwood            (585,912)    (573,118)       238,865     (128,202)
Equity income from MILPI                           474,256            -        584,314            -
                                              -------------  -----------  -------------  -----------
  Total income (loss) from equity interests       (125,111)    (588,235)       301,181     (216,612)
                                              -------------  -----------  -------------  -----------


Net income (loss)                             $   (115,773)  $  977,838   $   (180,230)  $2,517,614
                                              =============  ===========  =============  ===========


Net income (loss)
   per Class A Beneficiary Interest           $      (0.06)  $     0.39   $       0.27   $     0.85
                                              =============  ===========  =============  ===========
   per Class B Beneficiary Interest           $          -   $     0.06   $      (0.15)  $     0.21
                                              =============  ===========  =============  ===========
Cash distributions declared
   per Class A Beneficiary Interest           $         --   $       --   $         --   $       --
                                              =============  ===========  =============  ===========
   per Class B Beneficiary Interest           $         --   $       --   $         --   $       --
                                              =============  ===========  =============  ===========
</TABLE>


   The accompanying notes are an integral part of these financial statements.
<PAGE>
                                       32
                             AFG INVESTMENT TRUST C

                  STATEMENT OF CHANGES IN PARTICIPANTS' CAPITAL

                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001

                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                  Managing      Special            Class A Beneficiaries               Class B Beneficiaries
                                  Trustee     Beneficiary
                                   Amount       Amount            Interests          Amount           Interests          Amount
<S>                              <C>         <C>            <C>                    <C>          <C>                    <C>
 Balance at December 31, 2000    $  23,386   $    192,938               1,787,153  $25,570,164              3,024,740  $ 450,553

   Net income (loss)               (24,544)      (192,938)                      -      487,805                      -   (450,553)
                                 ----------  -------------  ---------------------  -----------  ---------------------  ----------

 Balance at September 30, 2001   $  (1,158)  $          -               1,787,153  $26,057,969              3,024,740  $       -
                                 ==========  =============  =====================  ===========  =====================  ==========


                                   Treasury
                                  Interests       Total
<S>                              <C>           <C>
 Balance at December 31, 2000    $(2,338,367)  $23,898,674

   Net income (loss)                       -      (180,230)
                                 ------------  ------------

 Balance at September 30, 2001   $(2,338,367)  $23,718,444
                                 ============  ============
</TABLE>






















   The accompanying notes are an integral part of these financial statements.


<PAGE>

                             AFG INVESTMENT TRUST C

                             STATEMENT OF CASH FLOWS

              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                2001          2000
                                                                          (Restated)
                                                                          (See Note 1)
<S>                                                         <C>           <C>
  CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES
  Net income (loss)                                         $  (180,230)  $  2,517,614
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities:
    Depreciation and amortization                             2,943,739      3,245,629
    Accretion of bond discount                                        -         (6,504)
    Gain on sale of equipment                                  (121,633)    (1,761,928)
    Gain on sale of investment securities                             -        (86,079)
    (Income) loss from equity interests                        (301,181)       216,612
  Changes in assets and liabilities:
    Rents receivable                                             41,441        161,872
    Accounts receivable - affiliate                             336,617        836,409
    Accounts receivable - other                                       -        (64,816)
    Guarantee fee receivable                                    126,000              -
    Interest receivable                                           8,420          8,441
    Other assets                                                (44,904)             -
    Accrued interest                                           (159,131)        31,278
    Accrued liabilities                                        (167,758)       (26,720)
    Accrued liabilities - affiliates                             29,740          5,164
    Deferred rental income                                        3,899       (285,937)
    Other liabilities                                            71,269              -
                                                            ------------  -------------
      Net cash provided by operating activities               2,586,288      4,791,035
                                                            ------------  -------------

  CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES
  Proceeds from equipment sales                                 181,784      3,170,692
  Investments - other                                               500       (123,220)
  Interest in EFG Kirkwood                                            -       (822,750)
  Interest in MILPI                                          (7,069,783)             -
  Proceeds from sale of investment securities                         -        214,608
                                                            ------------  -------------
      Net cash provided by (used in) investing activities    (6,887,499)     2,439,330
                                                            ------------  -------------

  CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES
  Proceeds from notes payable                                   471,032              -
  Principal payments - notes payable                         (3,359,342)    (5,575,312)
  Distributions paid                                                  -    (15,200,000)
                                                            ------------  -------------
      Net cash used in financing activities                  (2,888,310)   (20,775,312)
                                                            ------------  -------------

  Net decrease in cash and cash equivalents                  (7,189,521)   (13,544,947)
  Cash and cash equivalents at beginning of period            8,848,816     22,923,967
                                                            ------------  -------------
  Cash and cash equivalents at end of period                $ 1,659,295   $  9,379,020
                                                            ============  =============

  SUPPLEMENTAL INFORMATION
  Cash paid during the period for interest                  $ 1,709,340   $  1,863,914
                                                            ============  =============
</TABLE>


See  Note  8  to  the  financial statements regarding the Trust's acquisition of
interests  in  MILPI  during  the  nine  months  ended  September  30,  2001.

                                             The  accompanying  notes  are  an
integral  part  of  these  financial  statements.

                             AFG INVESTMENT TRUST C

                        NOTES TO THE FINANCIAL STATEMENTS

                               SEPTEMBER 30, 2001

                                   (UNAUDITED)

NOTE  1  -  RESTATEMENT  OF  SEPTEMBER  30,  2000  FINANCIAL  STATEMENTS
------------------------------------------------------------------------

After  AFG  Investment Trust C ("the Trust") filed its Form 10-Q for the quarter
ended  September  30,  2000  (the September 30, 2000 Form 10-Q) with the United
States  Securities  and Exchange Commission ("SEC"), the Trust received addition
information  related  to  the  underlying  operations  of  its  interests in EFG
Kirkwood  LLC  ("EFG  Kirkwood  LLC")  and  Kettle  Valley  Development  Limited
Partnership.  Consistent  with  the  Trust's  accounting policy of recording the
equity  income  (loss) of its underlying interest when the financial information
becomes  available, the Trust recorded its equity income (loss) for EFG Kirkwood
and  Kettle  Valley  Development Limited Partnership for the year ended December
31,  2000  in the third and fourth quarters of 2000, respectively.  As a result,
the  Trust's  financial  results reported in its Annual Report on Form 10-K (the
"2000  10-K")  for  the year ended December 31, 2000 filed with the SEC properly
reflect  the  entire  year's  operations.

The Trust has restated its Statement of Operations for the three and nine months
ended September 30, 2000 to properly reflect the equity (loss) from EFG Kirkwood
and  Kettle  Valley  Development  Limited  Partnership  for  these  periods  to
facilitate a more meaningful analysis of Management's Discussion and Analysis of
Financial  Condition  and Results of Operations. These adjustments resulted in a
net  decrease in earnings for the three and nine months ended September 30, 2000
of  $499,825  ($0.20  and  $0.03  per  Class  A beneficiary interest and Class B
beneficiary  interest,  respectively)  and $128,202 ($0.05 and $0.00 per Class A
beneficiary  interest  and  Class  B  beneficiary interest, respectively).  As a
result,  the  accompanying  financial  statements  for the three and nine months
ended  September  30,  2000  have  been  restated  from  the  amounts previously
reported.

NOTE  2  -  BASIS  OF  PRESENTATION
-----------------------------------

The  financial  statements  presented  herein  are  prepared  in conformity with
accounting  principles  generally  accepted  in  the  United  States for interim
financial  reporting  and  the  instructions  for preparing Form 10-Q under Rule
10-01  of Regulation S-X of the SEC and are unaudited.  As such, these financial
statements  do  not  include  all  information and footnote disclosures required
under accounting principles generally accepted in the United States for complete
financial  statements  and,  accordingly,  the accompanying financial statements
should  be  read  in conjunction with the footnotes presented in the 2000 Annual
Report.  Except  as  disclosed  herein, there has been no material change to the
information  presented  in  the  footnotes  to  the  2000  Annual  Report.

In  the  opinion  of  management,  all  adjustments  (consisting  of  normal and
recurring  adjustments)  considered  necessary  to  present fairly the financial
position  at  September 30, 2001 and December 31, 2000 and results of operations
for  the  three and nine months ended September 30, 2001 and 2000 have been made
and  are  reflected.  Operating  results for the nine months ended September 30,
2001  are not necessarily indicative of the results that may be expected for the
entire  year.

Certain  amounts  previously  reported  in  the  December  31,  2000  financial
statements  have  been  reclassified  to  conform  to  the  September  30,  2001
presentation.

The  table below details the allocation of income (loss) in each of the quarters
for  the  nine  months  ended  September  30,  2001.
<TABLE>
<CAPTION>

<S>                 <C>         <C>            <C>              <C>              <C>           <C>
                    Managing    Special        Class A          Class B
                    Trustee     Beneficiary    Beneficiaries    Beneficiaries    Treasury
                    Amount      Amount         Amount           Amount           Interests     Total

December 31, 2000   $  23,386   $    192,938   $   25,570,164   $      450,553   $(2,338,367)  $23,898,674
                    ----------  -------------  ---------------  ---------------  ------------  ------------
Net income             10,677         88,085          763,331          205,605             -     1,067,698
March 31, 2001         34,063        281,023       26,333,495          656,158    (2,338,367)   24,966,372
                    ----------  -------------  ---------------  ---------------  ------------  ------------

Net loss              (34,063)      (281,023)        (160,911)        (656,158)            -    (1,132,155)
June 30, 2001               -              -       26,172,584                -    (2,338,367)   23,834,217
                    ----------  -------------  ---------------  ---------------  ------------  ------------

Net loss               (1,158)             -         (114,615)               -             -      (115,773)
September 30, 2001  $  (1,158)  $          -   $   26,057,969   $            -   $(2,338,367)  $23,718,444
</TABLE>




NOTE  3  -  CASH  EQUIVALENTS  AND  INVESTMENT  SECURITIES
----------------------------------------------------------

The  Trust  considers all highly liquid investments with an original maturity of
three  months or less to be cash equivalents. Investment securities consisted of
equity  securities  and  debt  securities  that  were  classified  as
available-for-sale.  Available-for-sale  securities  were carried at fair value,
with  unrealized  gains  and  losses  reported  as  a  separate  component  of
participants'  capital.  The  amortized cost of debt securities was adjusted for
amortization  of  premiums  and  accretion  of  discounts  to  maturity.  Such
amortization  and  accretion are included in interest income on the accompanying
Statement  of  Operations.

At  September  30,  2001,  the  Trust  had $1,389,941 invested in federal agency
discount  notes,  repurchase  agreements  secured  by  U.S.  Treasury  Bills  or
interests  in  U.S.  Government  securities,  or  other  highly liquid overnight
investments.


NOTE  4  -  REVENUE  RECOGNITION
--------------------------------

Rents  are  payable  to  the  Trust  monthly,  quarterly or semi-annually and no
significant  amounts  are  calculated on factors other than the passage of time.
The  leases are accounted for as operating leases and are noncancellable.  Rents
received prior to their due dates are deferred.  In certain instances, the Trust
may  enter primary-term, renewal or re-lease agreements, which expire beyond the
Trust's  anticipated  dissolution  date.  This  circumstance  is not expected to
prevent  the  orderly wind-up of the Trust's business activities as the Managing
Trustee  and  the Advisor would seek to sell the then-remaining equipment assets
either  to  the lessee or to a third party, taking into consideration the amount
of  future  noncancellable  rental  payments associated with the attendant lease
agreements.  Future  minimum  rents  of  $11,392,427  are  due  as  follows:
<TABLE>
<CAPTION>

<S>                                <C>    <C>
For the year ending September 30,   2002  $ 5,449,807
                                    2003    5,140,320
                                    2004      710,156
                                    2005       92,144
                                          -----------

   .                               Total  $11,392,427
                                          ===========
</TABLE>



In  June  2001,  the  Trust  and  certain  affiliated  investment  programs
(collectively,  the  "Reno  Programs")  executed  an agreement with the existing
lessee,  Reno  Air,  Inc.  ("Reno"), to early terminate the lease of a McDonnell
Douglas  MD-87  aircraft that had been scheduled to expire in January 2003.  The
Reno  Programs  received  an  early termination fee of $840,000 and a payment of
$400,000  for  certain  maintenance required under the existing lease agreement.
The Trust's share of the early termination fee was $74,424, which was recognized
as  lease  revenue  during the three months ended June 30, 2001 and its share of
the  maintenance  payment  was  $35,440,  which  was  accrued  as  a maintenance
obligation  at  September 30, 2001.  Coincident with the termination of the Reno
lease, the aircraft was re-leased to Aerovias de Mexico, S.A. de C.V. for a term
of  four  years.  The  Reno  Programs  will receive rents of $6,240,000 over the
lease  term,  of  which  the  Trust's  share  is  $552,864.

NOTE  5  -  EQUIPMENT
---------------------

The  following  is  a  summary  of equipment owned by the Trust at September 30,
2001.  Remaining  Lease  Term  (Months), as used below, represents the number of
months  remaining  from  September  30, 2001 under contracted lease terms and is
presented  as  a  range  when  more than one lease agreement is contained in the
stated  equipment  category.  A  Remaining  Lease  Term  equal  to zero reflects
equipment  either  held for sale or re-lease or being leased on a month-to-month
basis.  In the opinion of Equis Financial Group Limited Partnership ("EFG"), the
acquisition  cost  of  the  equipment  did  not  exceed  its  fair market value.
<TABLE>
<CAPTION>


                                             Remaining
                                               Lease
                                                Term       Equipment
     Equipment Type                           (Months)      at Cost
-------------------------------------------  ----------  -------------
<S>                                          <C>         <C>
Aircraft                                          27-45  $ 32,134,911
Manufacturing                                      0-23     9,053,648
Locomotives                                          30     4,574,489
Materials handling                                 0-17     3,174,100
Computer and peripherals                            0-2     1,716,673
Construction and mining                               3     1,085,567
                                                         -------------
 Total equipment cost                                 .    51,739,388
 Accumulated depreciation                             .   (21,301,611)
                                                         -------------
 Equipment, net of accumulated depreciation           .  $ 30,437,777
                                                         =============
</TABLE>



At September 30, 2001, the Trust's equipment portfolio included equipment having
a  proportionate  original  cost  of  approximately  $38,342,000,  representing
approximately  74%  of  total  equipment  cost.

Certain  of  the equipment and related lease payment streams were used to secure
term  loans  with  third-party  lenders.  The  preceding  summary  of  equipment
includes  leveraged  equipment  having  an  original  cost  of  approximately
$44,277,000  and  a net book value of approximately $30,085,000 at September 30,
2001  (see  Note  10).

At September 30, 2001, the cost and net book value of equipment held for sale or
re-lease  was  approximately  $1,788,000  and $1,000, respectively. The Managing
Trustee  is actively seeking the sale or re-lease of all equipment not on lease.
In  addition,  the  summary  above  includes  equipment  being  leased  on  a
month-to-month  basis.

NOTE  6  -  INTEREST  IN  KETTLE  VALLEY
----------------------------------------

 On  March  1,  1999,  the  Trust  and  an  affiliated  trust (collectively, the
"Buyers")  formed  EFG  Kettle  Development  LLC,  a  Delaware limited liability
company,  for  the purpose of acquiring a 49.9% indirect ownership interest (the
"Interest")  in a real estate development in Kelowna, British Columbia in Canada
called  Kettle  Valley.  EFG  Kettle Development LLC, upon receiving the Buyers'
contributions  for  their  membership  interests,  purchased the Interest from a
special  purpose  company  ("SPC")  whose  subsidiaries  own  a  99.9%  limited
partnership  interest  in  Kettle  Valley  Development Limited Partnership ("KVD
LP").  The SPC and its subsidiaries were established by the seller, in part, for
income tax purposes and have no business interests other than the development of
Kettle  Valley.  KVD  LP  is  a  Canadian  Partnership  that  owns the property,
consisting  of  approximately  280 acres of land. The project is zoned for 1,120
residential  units  in  addition  to  commercial space. To date, 108 residential
units  have  been  constructed  and  10 are under construction. The seller is an
unaffiliated  third-party company and has retained the remaining 50.1% ownership
interest  in  the  SPC. A newly organized Canadian affiliate of EFG replaced the
original  general  partner  of  KVD  LP  on  March  1,  1999.

The Trust's ownership share in EFG Kettle Development LLC is approximately 50.6%
and  had a cost of $4,472,129, including a 1% acquisition fee of $44,729 paid to
EFG.  The acquisition was funded with cash of $3,139,648 and a non-recourse note
for  $1,332,481.  The note bears interest at an annualized rate of 7.5% and will
be  fully amortized over 34 months commencing April 1, 1999. The note is secured
by the Trust's interest in EFG Kettle Development LLC. The Trust's cost basis in
this  joint  venture was approximately $658,000 greater than its equity interest
in  the  underlying  net  assets  at December 31, 1999. This difference is being
amortized  over  a  period  of  10  years beginning January 1, 2000.  The amount
amortized  is included as an offset to Interest in Kettle Valley and was $49,350
for  each  of  the  nine  months  ended  September  30,  2001  and  2000.

The  Trust accounts for its interest in Kettle Valley using the equity method of
accounting.  Under  the equity method of accounting, the Trust's interest is (i)
increased (decreased) to reflect the Trust's share of income (loss) of the joint
venture  and (ii) decreased to reflect any distributions the Trust received from
the  joint  venture. The Trust's interest was decreased by $13,455 and $521,998,
respectively,  during  the  three  and  nine  months  ended  September 30, 2001,
reflecting  its  share  of  loss  from  Kettle  Valley.

In  addition,  the  seller  purchased  a  residual  sharing interest in a Boeing
767-300  aircraft owned by the Buyers and leased to Scandinavian Airlines System
("SAS").  The seller paid $3,013,206 to the Buyers ($1,524,803, or approximately
50.6%  to  the Trust) for the residual interest, which is subordinate to certain
preferred  payments  to  be  made to the Buyers in connection with the aircraft.
Payment  of  the  residual  interest  is  due  only to the extent that the Trust
receives  net  residual  proceeds  from  the  aircraft. The residual interest is
non-recourse  to  the  Buyers  and  is  reflected  as  Other  Liabilities on the
accompanying  Statement  of  Financial  Position  at both September 30, 2001 and
December  31,  2000.

The  table  below  provides comparative summarized income statement data for KVD
LP.  KVD LP has a January 31 fiscal year end. The Trust has a December 31 fiscal
year  end.  The  operating  results of KVD LP shown below have been conformed to
the  three  and  nine  month  periods  ended  September  30,  2001  and  2000,
respectively.
<TABLE>
<CAPTION>

<S>             <C>              <C>              <C>              <C>
                   Three            Three            Nine             Nine
                months ended     months ended     months ended     months ended
                September 30,    September 30,    September 30,    September 30,
                     2001             2000             2001             2000


Total revenues  $      766,593   $    1,162,731   $    1,951,907   $    2,658,316
Total expenses     (   798,006)      (1,223,447)      (2,746,612)      (3,077,402)
                ---------------  ---------------  ---------------  ---------------
Net loss              ($31,413)        ($60,716)       ($794,705)       ($419,086)
                ===============  ===============  ===============  ===============
</TABLE>





NOTE  7  -  INTEREST  IN  EFG  KIRKWOOD
---------------------------------------

On  May  1,  1999,  the  Trust  and  three  affiliated  trusts (collectively the
"Trusts") and Semele Group Inc. ("Semele") formed a joint venture, EFG Kirkwood,
for  the  purpose  of acquiring preferred and common stock interests in Kirkwood
Associates  Inc.  ("KAI").  The Trusts purchased Class A membership interests in
EFG  Kirkwood and Semele purchased Class B membership interests in EFG Kirkwood.
Generally,  the  Class  A  interest  holders  are  entitled to certain preferred
returns  prior  to  distribution  payments  to  the Class B interest holder. The
Trusts collectively own 100% of the Class A membership interests in EFG Kirkwood
and  Semele owns 100% of the Class B membership interests. The Trusts' interests
in EFG Kirkwood constitute 50% of the voting securities of that entity under the
operating  agreement for the LLC, which gives equal voting rights to Class A and
Class  B  membership  interests.  The  Managing  Trustee  is  the manager of EFG
Kirkwood.

On April 30, 2000, KAI's ownership interests in certain assets and substantially
all  of  its  liabilities  were  transferred  to  Mountain  Resort  Holdings LLC
("Mountain  Resort").  On  May  1,  2000, EFG Kirkwood exchanged its interest in
KAI's common and preferred stock for corresponding pro-rata membership interests
in  Mountain  Resort.  EFG  Kirkwood holds approximately 37.9% of the membership
interests  in  Mountain  Resort.  Mountain  Resort,  through  four  wholly owned
subsidiaries,  owns  and  operates  the  Kirkwood  Mountain Resort, a ski resort
located  in  northern  California,  a  public  utility  that  services the local
community, and land that is held for residential and commercial development. The
Trust  holds  a  37.2%  membership  interest in EFG Kirkwood and correspondingly
holds  40%  of  EFG  Kirkwood's  Class  A  voting  rights.

Subsequent  to  making  its  ownership interest in Mountain Resort, EFG Kirkwood
acquired  50%  of  the  membership  interests  in  Mountain  Springs Resorts LLC
("Mountain  Springs"). Mountain Springs, through a wholly owned subsidiary, owns
80%  of  the  common  stock and 100% of the Class B Preferred stock in an entity
that  owns  the  Purgatory  Ski  resort  in  Durango,  Colorado.

The  Trust's  ownership  interest  in  EFG  Kirkwood  had  an  original  cost of
$3,994,150;  including  a 1% acquisition fee of $39,546 paid to EFG. The Trust's
ownership interest in EFG Kirkwood is accounted for on the equity method and the
Trust  recorded a loss of $585,912 and income of $238,865, respectively, for the
three  and nine months ended September 30, 2001, representing its pro-rata share
of  the  net  income  (loss)  of EFG Kirkwood.  During the three and nine months
ended  September  30,  2000, the Trust recorded a loss of $573,118 and $128,202,
respectively,  representing  its pro-rata share of the net loss of EFG Kirkwood.

The  table  below  provides  comparative  summarized  income  statement data for
Mountain  Resort  and  the  Purgatory  Ski  Resort  for the three and nine month
periods  ended  September  30,  2001  and  2000,  respectively.  The  operating
companies  have  different fiscal year end dates than the Trust.  Therefore, the
operating  results  shown  below have been conformed to the three and nine month
periods  ended  September  30,  2001  and  2000,  respectively.


<TABLE>
<CAPTION>

<S>                     <C>              <C>              <C>              <C>
                          Three            Three            Nine             Nine
                        months ended     months ended     months ended     months ended
                        September 30,    September 30,    September 30,    September 30,
                             2001             2000             2001             2000
Mountain Resort:
Total revenues          $    3,223,274   $    3,170,247   $   22,378,487   $   21,649,975
Total expenses              (4,531,949)      (4,440,353)     (21,535,057)     (20,322,407)
Income taxes                        --               --          (52,243)          (2,400)
                        ---------------  ---------------  ---------------  ---------------
Net income (loss)          ($1,308,675)     ($1,270,106)  $      791,187   $    1,325,168
                        ===============  ===============  ===============  ===============

Purgatory Ski Resort:
Total revenues          $      868,486   $      919,297   $   12,014,674   $    9,693,552
Total expenses              (2,966,166)      (3,036,123)     (11,542,289)     (11,388,497)
                        ---------------  ---------------  ---------------  ---------------
Net income (loss)          ($2,097,680)     ($2,116,826)  $      472,385      ($1,694,945)
                        ===============  ===============  ===============  ===============
</TABLE>




NOTE  8  -  INTEREST  IN  MILPI
-------------------------------

In  December  2000,  the  Trust  and  three affiliated Trusts (collectively, the
"Trusts")  formed  MILPI Holdings, LLC ("MILPI"), which formed MILPI Acquisition
Corp.  ("MILPI  Acquisition"),  a  wholly  owned subsidiary of MILPI. The Trusts
collectively paid $1.2 million for their membership interests in MILPI and MILPI
purchased  the  shares  of  MILPI Acquisition for an aggregate purchase price of
$1.2  million  at December 31, 2000. MILPI Acquisition entered into a definitive
agreement  (the  "Agreement") with PLM International, Inc. ("PLM"), an equipment
leasing and asset management company, for the purpose of acquiring up to 100% of
the  outstanding common stock of PLM, for an approximate purchase price of up to
$27  million.  In  connection  with the acquisition, on December 29, 2000, MILPI
Acquisition  commenced  a  tender  offer  to  purchase  any  and  all  of  PLM's
outstanding  common  stock.

Pursuant  to the cash tender offer, MILPI Acquisition acquired approximately 83%
of  the  PLM  common  stock  in  February  2001  for  a  total purchase price of
approximately $21.7 million. Under the terms of the Agreement, with the approval
of  the  holders  of  50.1%  of  the  outstanding  common  stock  of  PLM, MILPI
Acquisition  will merge into PLM, with PLM being the surviving entity. PLM filed
a  proxy  statement  with  the  Securities  and  Exchange  Commission ("SEC") on
February 9, 2001 for a special meeting of its shareholders to vote on the merger
proposal.  Because  MILPI  Acquisition  owns approximately 83% of the PLM common
stock,  its  vote alone would be sufficient to assure the approval of the merger
proposal  at  the special meeting and MILPI has agreed to vote all of its shares
in  favor  of the merger proposal. Once the merger is approved, the Trusts would
then  jointly own 100% of the outstanding common stock of PLM through their 100%
interest  in  MILPI.  However, completion of the SEC staff's review of the proxy
statement  for  approval  of the merger is dependent in part on the satisfactory
resolution  of  the  Trust's  discussions  with the staff regarding its possible
status  as  an  inadvertent  investment  company. If the merger is approved, the
Trusts  may  be  required  to  provide an additional $4.4 million to acquire the
remaining  approximate  17%  of  PLM's  outstanding  common  stock.

The  Trust  has  a  34%  membership interest in MILPI having an original cost of
$7,732,783.  The  cost  of  the  Trust's  interest  in  MILPI  reflects  MILPI
Acquisition's  cost  of  acquiring the common stock of PLM, including the amount
paid  for  the  shares  tendered  of  $7,403,746, a 1% acquisition fee paid to a
wholly-owned  subsidiary  of Semele of $74,037 and capitalized transaction costs
of  $255,000.  The capitalized transaction costs will be reimbursed by the Trust
to  MILPI  and  are  included  in  Accrued  Liabilities  -  Affiliates  on  the
accompanying  Statement of Financial Position at September 30, 2001.  During the
quarter  ended  June  30,  2001,  the  Trusts obtained additional information to
refine  the  estimate  of  fair  values  the  underlying  net assets of MILPI at
February  9,  2001.  The  Trust's  cost  basis  in  its  interest  in  MILPI was
approximately  $356,000  greater  than its equity interest in the underlying net
assets  of  MILPI at February 9, 2001. This difference is being amortized over a
period  of 7 years beginning March 1, 2001.  The amount amortized is included as
an  offset  to  Interest  in MILPI and was $28,211 during  the nine months ended
September  30,  2001.

Equis  II  Corporation  has  voting  control of the Trusts and owns the Managing
Trustee of the Trusts. Semele owns Equis II Corporation. Mr. Engle and Mr. Coyne
who  are a director and an officer of the Trust, respectively, are also officers
and  directors of, and own significant stock in, Semele. Mr. Engle and Mr. Coyne
are  officers  and  directors  of  MILPI  Acquisition.

The  Trust's  ownership  interest in MILPI is accounted for on the equity method
and the Trust recorded income of $474,256 and $584,314, respectively, during the
three  and nine months ended September 30, 2001, representing its pro rata share
of  the  income  of  MILPI.

The  table below provides summarized income statement data for PLM for the three
and nine month period ended September 30, 2001.  The acquisition of PLM occurred
in  February  2001.
<TABLE>
<CAPTION>

<S>                                  <C>                   <C>
                                     Three months ended    Nine months ended
                                     September 30, 2001    September 30, 2001

Total operating revenues             $         3,434,000   $         8,770,000
Total operating expenses                      (1,216,000)           (5,665,000)
Other income                                      99,000               270,000
                                     --------------------  --------------------
Income before income taxes                     2,317,000             3,375,000
Provision for income taxes                      (882,000)           (1,304,000)
                                     --------------------  --------------------

Net income                           $         1,435,000   $         2,071,000
                                     ====================  ====================

Equity income from MILPI             $           474,256   $           584,314
Goodwill amortization in connection
  with PLM                                       (12,722)              (28,211)
                                     --------------------  --------------------
Net income from PLM after goodwill
  Amortization                       $           461,534   $           556,103
                                     ====================  ====================
</TABLE>




NOTE  9  -  RELATED  PARTY  TRANSACTIONS
----------------------------------------

All  operating  expenses  incurred by the Trust are paid by EFG on behalf of the
Trust  and EFG is reimbursed at its actual cost for such expenditures.  Fees and
other  costs  incurred during the nine months ended September 30, 2001 and 2000,
which  were  paid  or  accrued  by  the  Trust  to EFG or its Affiliates, are as
follows:
<TABLE>
<CAPTION>


                                    2001       2000
                                 ----------  --------
<S>                              <C>         <C>
Acquisition fees                 $   74,037  $  9,366
Management fees                     280,680   329,346
Administrative charges              122,751   137,048
Reimbursable operating expenses
   due to third parties             873,901   201,785
                                 ----------  --------

          Total                  $1,351,369  $677,545
                                 ==========  ========
</TABLE>


All  rents  and  proceeds from the sale of equipment are paid directly to either
EFG  or  to  a  lender.  EFG  temporarily deposits collected funds in a separate
interest-bearing  escrow account prior to remittance to the Trust.  At September
30,  2001,  the  Trust  was  owed $88,236 by EFG for such funds and the interest
thereon.  These  funds  were  remitted  to  the  Trust  in  October  2001.


NOTE  10  -  NOTES  PAYABLE
---------------------------

Notes  payable  at  September  30,  2001  consisted  of  installment  notes  of
$23,332,484  payable  to  banks and institutional lenders.  The notes bear fixed
interest  rates  ranging between 6.76% and 9.176%.  All of the installment notes
are  non-recourse and are collateralized by the Trust's equipment and assignment
of  the  related  lease  payments, except for one note in the amount of $88,788,
which  is  collateralized  by  the  Trust's  ownership  interests  in EFG Kettle
Development  LLC  (see  Note  6).  Generally, the equipment-related installments
notes will be fully amortized by noncancellable rents.  However, the Trust has a
balloon  payment  obligation  of $16,193,280 at the expiration of the lease term
related  to  its  interest  in  an  aircraft  leased  to  SAS  in December 2003.

In  June  2001,  the  Trust  and  certain  affiliated  investment  programs
(collectively,  the  "Reno  Programs")  executed  an agreement with the existing
lessee,  Reno  Air,  Inc.  ("Reno"), to early terminate the lease of a McDonnell
Douglas  MD-87  aircraft  that  had  been  scheduled  to expire in January 2003.
Coincident with the termination of the Reno lease, the aircraft was re-leased to
Aerovias  de  Mexico,  S.A.  de  C.V.  for  a term of four years.  (See Note 4 -
Revenue  Recognition).  The  Reno  Programs executed a debt agreement with a new
lender  collateralized by the aircraft and assignment of the Aerovias de Mexico,
S.A.  de  C.V.  lease  payments.  The  Reno  Programs  received debt proceeds of
$5,316,482,  of  which  the  Trust's share was $471,032.  The Trust used the new
debt  proceeds  and  a  portion of certain other receipts from Reno to repay the
outstanding  balance  of  the  existing  indebtedness related to the aircraft of
$493,137  and  accrued  interest  and  fees  of  $7,347.

Management  believes  that the carrying amount of the notes payable approximates
fair  value  at  September 30, 2001 based on its experience and understanding of
the  market  for  instruments  with  similar  terms.

The  annual  maturities  of  the  notes  payable  are  as  follows:
<TABLE>
<CAPTION>

<S>                                <C>    <C>
For the year ending September 30,   2002  $ 3,249,983
                                    2003    3,243,670
                                    2004   16,760,094
                                    2005       78,737
                                          -----------

     .                             Total  $23,332,484
                                          ===========
</TABLE>



NOTE  11  -  GUARANTEE  AGREEMENT
---------------------------------

On  March  8,  2000,  the  Trust  and three affiliated trusts (collectively, the
"Trusts")  entered  into  a  guarantee agreement whereby the Trusts, jointly and
severally,  guaranteed  the  payment  obligations under a master lease agreement
between  Echelon  Commercial  LLC,  a  newly-formed  Delaware  company  that  is
controlled  by  Gary  D. Engle, President and Chief Executive Officer of EFG, as
lessee,  and Heller Affordable Housing of Florida, Inc., and two other entities,
as lessor ("Heller"). The lease payments of Echelon Commercial LLC to Heller are
supported  by  lease payments to Echelon Commercial LLC from various sub-lessees
who  are parties to commercial and residential lease agreements under the master
lease  agreement. The guarantee of lease /payments by the Trusts was capped at a
maximum  of  $34,500,000, excluding expenses that could result in the event that
Echelon  Commercial LLC defaulted under the terms of the master lease agreement.

As  a result of principal reductions on the average guarantee amount, an amended
and  restated  agreement  was  entered  into in December 2000, which reduced the
guaranteed  amount  among  the  Trusts.  During  the quarter ended September 30,
2001,  the  requirements  of  the  guarantee  agreement  were  met and the Trust
received  payment  for  all  outstanding  amounts  totaling  $224,513, including
$89,583  of income related to the guarantee agreement recognized during the nine
months  ended  September  30,  2001.  During the nine months ended September 30,
2000,  the  Trust  received an upfront cash fee of $175,400 and recognized total
income  of  $240,215 from the guarantee. The guarantee fee is reflected as Other
Income  on  the  accompanying Statement of Operations.  The Trust has no further
obligations  under  the  guarantee  agreement.

NOTE  12  -  CONTINGENCIES
--------------------------

The  Investment  Company  Act  of  1940  (the  "Act") places restrictions on the
capital  structure  and  business activities of companies registered thereunder.
The  Trust  has  active  business operations in the financial services industry,
primarily  equipment  leasing,  and  in  the  real  estate  industry through its
interests in EFG Kirkwood and Kettle Valley. The Trust does not intend to engage
in  investment  activities  in  a  manner or to an extent that would require the
Trust  to  register  as  an  investment  company  under  the Act. However, it is
possible  that the Trust may unintentionally engage in an activity or activities
that  may be construed to fall within the scope of the Act. The Managing Trustee
is  engaged  in  discussions  with  the  staff  of  the  Securities and Exchange
Commission  regarding  whether or not the Trust may be an inadvertent investment
company  by  virtue  of  its  recent  acquisition  activities.  If the Trust was
determined  to  be  an  investment  company,  its  business  would  be adversely
affected.  The  Act,  among  other  things, prohibits an unregistered investment
company  from  offering  securities  for  sale  or  engaging  in any business or
interstate  commerce.  The  Managing  Trustee has consulted counsel and believes
that the Trust is not an investment company.  If necessary, the Trust intends to
avoid  being  deemed  an investment company by disposing of or acquiring certain
assets  that  it  might  not  otherwise  dispose  of  or  acquire.


NOTE  13  -  OPERATING  SEGMENTS
--------------------------------

The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate  Ownership,  Development  &  Management.  The  Equipment  Leasing segment
includes the management of the Trust's equipment lease portfolio and the Trust's
interest  in  MILPI.  MILPI  owns  MILPI  Acquisition,  which  owns the majority
interest in PLM, an equipment leasing and asset management company (see Note 8).
The  Real  Estate  segment includes the ownership, management and development of
commercial properties, recreational properties, condominiums, interval ownership
units,  townhomes,  single  family  homes  and  land  sales  through the Trust's
ownership  interests  in  EFG  Kirkwood  and  Kettle  Valley.

The  Trust's  reportable  segments  offer different products or services and are
managed  separately  because  each  requires  different operating strategies and
management  expertise.  There  are  no material intersegment sales or transfers.

Segment  information  for the three and nine months ended September 30, 2001 and
2000  is  summarized  below.

<TABLE>
<CAPTION>
                                             Three months ended     Nine months ended
                                                September 30,        September 30,

                                            2001         2000         2001         2000
<S>                                      <C>          <C>          <C>          <C>
Total Income:
   Equipment leasing                     $2,210,643   $3,379,909   $5,874,183   $8,543,226
   Real estate                             (599,367)    (588,235)    (283,133)    (216,612)
                                         -----------  -----------  -----------  -----------
     Total                               $1,611,276   $2,791,674   $5,591,050   $8,326,614
                                         ===========  ===========  ===========  ===========

Operating Expenses, Management Fees
  and Other Expenses:
   Equipment leasing                     $  272,073   $  220,694   $1,165,107   $  609,170
   Real estate                               40,354       20,395      112,225       59,009
                                         -----------  -----------  -----------  -----------
     Total                               $  312,427   $  241,089   $1,277,332   $  668,179
                                         ===========  ===========  ===========  ===========

Interest Expense:
   Equipment leasing                     $  431,725   $  571,392   $1,533,048   $1,850,212
   Real estate                                3,307       12,754       17,161       44,980
                                         -----------  -----------  -----------  -----------
     Total                               $  435,032   $  584,146   $1,550,209   $1,895,192
                                         ===========  ===========  ===========  ===========

Depreciation and Amortization Expense:
   Equipment leasing                     $  963,140   $  972,151   $2,894,389   $3,196,279
   Real estate                               16,450       16,450       49,350       49,350
                                         -----------  -----------  -----------  -----------
     Total                               $  979,590   $  988,601   $2,943,739   $3,245,629
                                         ===========  ===========  ===========  ===========

 Net Income (Loss)                       $ (115,773)  $  977,838   $ (180,230)  $2,517,614
                                         ===========  ===========  ===========  ===========
</TABLE>


Three  and  nine  months ended September 30, 2001 compared to the three and nine
--------------------------------------------------------------------------------
months  ended  September  30,  2000:
------------------------------------

Results  of  Operations
-----------------------

Equipment  Leasing
------------------

For  the  three  and  nine months ended September 30, 2001, the Trust recognized
lease revenue of $1,690,959 and $4,941,320, respectively, compared to $1,768,284
and  $5,948,971,  respectively,  for same periods in 2000. The decrease in lease
revenue from 2000 to 2001 resulted primarily from lease term expirations and the
sale  of equipment.  The level of lease revenue to be recognized by the Trust in
the  future  may be impacted by future reinvestment; however, the extent of such
impact  cannot  be  determined  at  this time. Future lease term expirations and
equipment  sales  will  result  in  a reduction in the lease revenue recognized.

The Trust's equipment portfolio includes certain assets in which the Trust holds
a  proportionate ownership interest.  In such cases, the remaining interests are
owned  by  an  affiliated  equipment  leasing  program  sponsored  by  EFG.
Proportionate  equipment  ownership  enables  the Trust to further diversify its
equipment  portfolio  by  participating  in  the  ownership  of selected assets,
thereby  reducing  the  general  levels  of  risk,  which  could  result  from a
concentration  in  any single equipment type, industry or lessee.  The Trust and
each  affiliate individually report, in proportion to their respective ownership
interests,  their  respective  shares  of  assets,  liabilities,  revenues,  and
expenses  associated  with  the  equipment.

In  June  2001,  the  Trust  and  certain  affiliated  investment  programs
(collectively,  the  "Reno  Programs")  executed  an agreement with the existing
lessee,  Reno  Air,  Inc.  ("Reno"), to early terminate the lease of a McDonnell
Douglas  MD-87  aircraft that had been scheduled to expire in January 2003.  The
Reno  Programs  received  an  early termination fee of $840,000 and a payment of
$400,000  for  certain  maintenance required under the existing lease agreement.
The Trust's share of the early termination fee was $74,424, which was recognized
as  lease  revenue during the nine months ended September 30, 2001 and its share
of  the  maintenance  payment  was  $35,440,  which  is accrued as a maintenance
obligation  at  September 30, 2001.  Coincident with the termination of the Reno
lease, the aircraft was re-leased to Aerovias de Mexico, S.A. de C.V. for a term
of  four  years.  The  Reno  Programs  will receive rents of $6,240,000 over the
lease  term,  of  which  the  Trust's  share  is  $552,864.

Interest  income  for  the  three  and  nine months ended September 30, 2001 was
$22,425  and  $126,411,  respectively,  compared  to  $167,801  and  $506,033,
respectively,  for  the  same  periods  in  2000.  Interest  income is typically
generated  from  the temporary investment of rental receipts and equipment sales
proceeds  in  short-term  instruments.  The  amount of future interest income is
expected  to  fluctuate as a result of changing interest rates and the amount of
cash  available  for  investment  among  other  factors.

During  the three and nine months ended September 30, 2001, the Trust sold fully
depreciated  equipment  and  equipment  having  a  net  book  value  of $60,151,
respectively,  to existing lessees and third parties.  These sales resulted in a
net  gain,  for  financial  statement  purposes,  of  $7,634  and  $121,633,
respectively.

During the three and nine month periods ended September 30, 2000, the Trust sold
equipment  having a net book value of $1,359,354 and $1,408,764, respectively to
existing  lessees  and  third  parties.  These sales resulted in a net gain, for
financial  statement  purposes,  of  $1,409,938  and  $1,761,928,  respectively.

It  cannot  be determined whether future sales of equipment will result in a net
gain or a net loss to the Trust, as such transactions will be dependent upon the
condition  and type of equipment being sold and its marketability at the time of
sale.  In  addition, the amount of gain or loss reported for financial statement
purposes  is  partly  a  function  of  the  amount  of  accumulated depreciation
associated  with  the  equipment  being  sold.

The  ultimate  realization  of  residual  value  for  any  type  of equipment is
dependent  upon  many  factors,  including  EFG's  ability  to sell and re-lease
equipment.  Changing market conditions, industry trends, technological advances,
and  many  other  events can converge to enhance or detract from asset values at
any  given  time.  EFG  attempts  to  monitor these changes in order to identify
opportunities  which  may  be  advantageous to the Trust and which will maximize
total  cash  returns  for  each  asset.

The  total  economic  value  realized  upon  final  disposition of each asset is
comprised  of all primary lease term revenue generated from that asset, together
with its residual value.  The latter consists of cash proceeds realized upon the
asset's  sale  in  addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis.  The Trust classifies such
residual  rental payments as lease revenue.  Consequently, the amount of gain or
loss  reported  in the financial statements is not necessarily indicative of the
total  residual  value  the  Trust  achieved  from  leasing  the  equipment.

During  the  nine  months  ended  September  30, 2000, the Trust sold investment
securities  having  a book value of $128,529, resulting in a gain, for financial
statement  purposes,  of  $86,079.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement  whereby  the  trusts,  jointly  and severally, guaranteed the payment
obligations  under  a  master lease agreement between Echelon Commercial LLC, as
lessee,  and Heller Affordable Housing of Florida, Inc., and two other entities,
as  lessor.  (See  Note  11)   During  the quarter ended September 30, 2001, the
requirements  of the guarantee agreement were met and the Trust received payment
for  all  outstanding  amounts  totaling  $224,513,  including $89,583 of income
related  to  the  guarantee  agreement  recognized  during the nine months ended
September  30, 2001.  During the nine months ended September 30, 2000, the Trust
received an upfront cash fee of $175,400 and recognized total income of $240,215
from  the  guarantee.  The  guarantee  fee  is  reflected as Other Income on the
accompanying  Statement  of  Operations.  The  Trust  has no further obligations
under  the  guarantee  agreement.

Depreciation  expense  for  the three and nine month periods ended September 30,
2001  was  $950,418  and  $2,866,178  compared  to  $972,151  and  $3,196,279,
respectively,  for  the same periods in 2000.  For financial reporting purposes,
to the extent that an asset is held on primary lease term, the Trust depreciates
the difference between (i) the cost of the asset and (ii) the estimated residual
value  of  the  asset  on a straight-line basis over such term.  For purposes of
this  policy,  estimated residual values represent estimates of equipment values
at  the  date  of primary lease expiration.  To the extent that an asset is held
beyond  its  primary lease term, the Trust continues to depreciate the remaining
net  book value of the asset on a straight-line basis over the asset's remaining
economic  life.

Interest  expense  for the three and nine month periods ended September 30, 2001
was  $431,725 and $1,533,048, respectively, compared to $571,392 and $1,850,212,
respectively,  for  the same periods in 2000.  Interest expense will decrease in
the  future  as  the  principal  balance of notes payable is reduced through the
application  of  rent  receipts  to  outstanding  debt.

Management  fees  related to equipment leasing were $23,605 and $168,455 for the
three  and nine month periods ended September 30, 2001 and $79,447 and $270,337,
respectively,  for the same periods in 2000.  Management fees are based on 5% of
gross  lease revenue generated by operating leases and 2% of gross lease revenue
generated  by  full payout leases, subject to certain limitations.  In addition,
management  fees  include  a  fee  of  1%  of  the  cost of the MILPI interests.

Operating  expenses  were  $248,468 and $996,652 during the three and nine month
periods  ended  September  30,  2001  compared  to  $141,247  and  $338,833,
respectively,  for  the  same  periods  in  2000.  In  2001,  operating expenses
included  approximately  $155,000  for  ongoing  legal matters and approximately
$262,000 for remarketing costs related to the re-lease of aircraft leased to SAS
and  Aerovias  de  Mexico,  S.A.  de  C.V..  Operating  expenses  also  included
approximately  $114,000 of costs reimbursed to EFG as a result of the successful
acquisition  of  the  PLM common stock by MILPI Acquisition, as discussed below.
In conjunction with the acquisition of the PLM common stock, EFG became entitled
to  recover  certain  out  of  pocket expenses which it had previously incurred.
Other  operating  expenses  consist  primarily  of  administrative  charges,
professional  service  costs, such as audit and legal fees, as well as printing,
distribution  and  remarketing expenses. The amount of future operating expenses
cannot  be  predicted  with certainty; however, such expenses are usually higher
during  the  acquisition  and liquidation phases of a trust.  Other fluctuations
typically  occur in relation to the volume and timing of remarketing activities.

During  the  three  and nine months ended September 30, 2001, the Trust recorded
income  of  $474,256  and $584,314, respectively, from its ownership interest in
MILPI.  This  income  represents  the  Trust's  share of the net income of MILPI
recorded  under the equity method of accounting.  The Trust recorded $12,722 and
$28,211,  respectively,  of  amortization  expense for the three and nine months
ended  September 30, 2001, which related to the goodwill recorded at the time of
the  acquisition  of  the  PLM common stock by MILPI Acquisition.  (See Note 8).

The  Trust's  income  from  MILPI results from MILPI's indirect ownership of PLM
common  stock  acquired in February 2001.  PLM is an equipment leasing and asset
management  company.

During  the  three  and  nine  months  ended  September 30, 2001, PLM recognized
operating  revenues  of  approximately  $3,434,000 and approximately $8,770,000,
respectively.  Revenues  for  the  three  months  ended  September  30, 2001 are
comprised  primarily  of  management  fees  of  approximately  $1,375,000  and
$1,847,000  of  acquisition  and  lease negotiation fees.  Revenues for the nine
months  ended  September  30, 2001 are comprised primarily of management fees of
approximately  $4,362,000,  acquisition  and  lease  negotiation  fees  of
approximately  $2,032,000  and operating lease income of approximately $695,000.

During  the  three and nine months ended September, 30, 2001, PLM incurred total
operating  expenses  of  approximately  $1,216,000 and approximately $5,665,000,
respectively.  Operating  expenses for the three months ended September 30, 2001
are  comprised primarily of general and administrative expenses of approximately
$658,000  and  operations  support  expenses of approximately $453,000.  For the
nine months ended September 30, 2001, operating expenses are comprised primarily
of  general  and  administrative  expenses  of  approximately  $4,054,000  and
operations  support  expenses  of approximately $1,092,000, which include salary
and  office-related  expenses  for  operational  activities.

During  the three and nine months ended September 30, 2001, PLM recognized other
income  of  approximately  $101,000  and  $270,000,  approximately,  comprised
primarily  of  interest income earned on investments.  During the three and nine
months  ended  September  30,  2001,  PLM  also  incurred  income tax expense of
approximately  $882,000  and  $1,304,000,  respectively.


Real  Estate
------------

Management  fees  for  non-equipment  assets  were  $40,354  and  $112,225,
respectively, for the three and nine months ended September 30, 2001 compared to
$20,395  and  $59,009,  respectively,  for the same periods in 2000.  Management
fees  for  non-equipment  assets,  excluding  cash,  are 1% of such assets under
management.

Interest  expense  on  a  note payable related to the Trust's acquisition of its
interest  in  Kettle  Valley was $3,307 and $17,161, respectively, for the three
and  nine  months  ended  September  30,  2001  compared to $12,754 and $44,980,
respectively,  for  the same periods in 2000.  Interest expense will decrease in
the  future  as  payments  reduce the outstanding principal balance of the note.

The  Trust  has a 50.6% ownership interest in Kettle Valley.  Kettle Valley is a
joint venture among the Trust and an affiliated trust, formed for the purpose of
acquiring  a  49.9%  indirect ownership interest in a real estate development in
Kelowna, British Columbia in Canada.  AFG ASIT Corporation manages Kettle Valley
and  the  development  is  managed  by  a  Canadian  affiliate  of  EFG  .

For  the  three  and  nine months ended September 30, 2001, the Trust recorded a
loss  of  $13,455  and  $521,998, respectively, compared to $15,117 and $88,410,
respectively, for the same periods of 2000 from its ownership interest in Kettle
Valley.  The  losses  represent  the  Trust's  share of the net losses of Kettle
Valley  recorded  under the equity method of accounting.  In addition, the Trust
recorded  amortization expense of $16,450 and $49,350, respectively, during each
of  the  three  and  nine  month  periods  ended September 30, 2001 and 2000, in
connection  with  its  interest  in  Kettle  Valley.  (See  Note  6.)

Kettle  Valley  is a real estate development company located in Kelowna, British
Columbia,  Canada.  The  project,  which  is  being  developed  by Kettle Valley
Development  Limited  Partnership,  consists  of approximately 280 acres of land
that  is  zoned for 1,120 residential units in addition to commercial space.  To
date,  108  residential  units  have been constructed and sold and 10 additional
units  are  under  construction.

During  the  three  and  nine  months  ended  September  30, 2001, Kettle Valley
recorded  revenues  of  $766,593  and  $1,951,907,  respectively,  compared  to
$1,162,731  and  $2,658,316,  respectively,  for  the same periods in 2000.  The
decrease  in revenues for both the three and nine month periods is the result of
a  decrease  in  the  number  of  lot  and  home  sales.

Kettle  Valley  incurred  total  expenses  of $798,006 and $2,746,612 during the
three  and  nine  months  ended  September  30,  2001, respectively, compared to
$1,223,447  and  $3,077,402,  respectively, for the same periods in 2000.  Total
expenses  decreased  $425,441 and $330,790, respectively, for the three and nine
months  ended  September  30, 2001 as compared to the same periods in 2000.  The
decrease  in  expenses is the result of a decrease in the number of lot and home
sales  discussed  above.

The  Trust  also  has  an ownership interest in EFG Kirkwood.  EFG Kirkwood is a
joint  venture  among  the  Trust,  certain  affiliated Trusts and Semele and is
managed by AFG ASIT Corporation. EFG Kirkwood is a member in two joint ventures,
Mountain Resort Holdings LLC ("Mountain Resort") and Mountain Springs Resort LLC
("Mountain  Springs")  (See  Note  7).

Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest in the Purgatory Ski resort in Durango, Colorado.

For  the  three  and  nine  month  periods  ended  September 30, 2001, the Trust
recorded  a  loss  of  $585,912  and  income of $238,865, respectively, from its
ownership  interest  in  EFG  Kirkwood.  For  the  three  and  nine months ended
September  30,  2000,  the  Trust  recorded  a  loss  of  $573,118 and $128,202,
respectively,  from  its  ownership interest in EFG Kirkwood. This income (loss)
represents  the  Trust's share of the net income (loss) of EFG Kirkwood recorded
under  the  equity  method  of  accounting.  Due  to  the seasonal nature of EFG
Kirkwood's  operations, the financial results of the three and nine months ended
September  30,  2001 and 2000 may not be indicative of future periods  (See Note
7).

Mountain Resort is primarily a ski and mountain recreation resort with more than
2,000 acres of terrain, located approximately 32 miles south of Lake Tahoe.  The
resort  receives  approximately  70% of its revenues from winter ski operations,
primarily ski, lodging, retail and food and beverage services with the remainder
of  the  revenues  generated  from summer outdoor activities, including mountain
biking,  hiking  and  other  activities.  Other operations include a real estate
development  division, which has developed and is managing a 40-unit condominium
residential  and commercial building, an electric and gas utility company, which
operates  as  a regulated utility company and provides electric and gas services
to  the  Kirkwood  community,  and  a  real  estate  brokerage  company.

During  the nine months ended September 30, 2001, Mountain Resort recorded total
revenues  of  $22,378,487  compared  to $21,649,975 for the same period in 2000.
The  increase  in  total revenues from 2000 to 2001 of $728,512 is the result an
increase  in  ski-related  revenues  offset by a decrease in residential-related
revenues.

Ski-related  revenues  and  other  operations  revenues  increased approximately
$2,350,000  and  approximately $927,000, respectively, for the nine months ended
September  30,  2001  compared  to  the  same  period  in 2000.  The increase in
ski-related revenues resulted from improved weather conditions during the winter
season,  which  attracted  more skiers.  Improved weather conditions resulted in
the  resort supporting approximately 260,000 skiers for the nine months ended in
2001  as  compared  to  181,000  for  the  same  period  in  2000.

Residential-related  revenues  decreased  approximately  $2,549,000 for the nine
months  ended 2001 as compared to 2000.  Construction was completed on a 40-unit
condominium  residential  and  commercial  building  in  December  1999 and as a
result,  a  significant number of condominium sales closed in January 2000.  For
the  nine  months  ended  September  30,  2001,  residential  revenues  were
approximately  $513,000  compared  to  residential  revenues  of  approximately
$3,062,000  for  the  same  period  in  2000.

During  the  nine  months  ended  September  30,  2001,  Kirkwood recorded total
expenses of $21,535,057 compared to $20,322,407 for the same period in 2000. The
increase  in  total  expenses  of  $1,212,650 from 2000 to 2001 is the result an
increase  in  ski-related  expenses  offset by a decrease in residential-related
expenses.

Ski-related  expenses  and  other  operations  expenses  increased approximately
$2,392,000  and approximately $555,000, respectively, as a result of an increase
in  ski-related  revenues  and  other  operations  revenues, as discussed above.
Residential-related expenses decreased approximately $1,734,000 as a result of a
decrease  in  cost of sales from condominium units sold in the nine months ended
September 30, 2001 compared to the same period in 2000, as also discussed above.


Purgatory  Ski  Resort  ("Purgatory")  is  a  ski and mountain recreation resort
covering 2,500 acres, situated on 40 miles of terrain with 75 ski trails located
near  Durango,  Colorado.  Purgatory  receives the majority of its revenues from
winter  ski  operations,  primarily  ski,  lodging, retail and food and beverage
services,  with  the  remainder  of  revenues  generated  from  summer  outdoor
activities,  such  as  alpine  sliding  and  mountain  biking.

During  the  nine  months  ended  September  30,  2001, Purgatory recorded total
revenues of $12,014,674 compared to $9,693,552 for the same period of 2000.  The
increase  in  total  revenues  from  2000 to 2001 of $2,321,122 is the result of
improved  weather  conditions  during  the  winter  season,which  attracted more
skiers.  Improved  weather  conditions  resulted  in  the  resort  supporting
approximately  240,000  skiers  for  the  nine  months  ended September 30, 2001
compared  to  176,000  skiers  in  the  same  period  of  2000.

Total  expenses  were  $11,542,289  for the nine months ended September 30, 2001
compared  to  $11,388,497  for  the  same period in 2000.  The increase in total
expenses  for  the  nine  months  ended  September 30, 2001 compared to the same
period  in  2000 of $153,792 is a result of an increase in operating expenses of
$423,771, due to an increase in the number of skiers, discussed above, offset by
a  decrease  in  financing  costs  of  $296,979.


NOTE  14  -  NEW  ACCOUNTING  PRONOUNCEMENTS
--------------------------------------------

In  June  2001,  the  Financial  Accounting Standards Board issued Statements of
Financial  Accounting  Standards  ("SFAS") No. 141, "Business Combinations", and
SFAS  No.  142,  "Goodwill  and  Other  Intangible  Assets",  (collectively  the
"Statements")  effective  for  fiscal  years  beginning after December 15, 2001.
Under  the  new  rules, goodwill and intangible assets deemed to have indefinite
lives will no longer be amortized but will be subject to annual impairment tests
in  accordance with the Statements.  Other intangible assets will continue to be
amortized  over  their  useful  lives.

The  Trust  will  apply  the  new  rules  on  accounting  for goodwill and other
intangible  assets  beginning  in the first quarter of 2002.  Application of the
nonamortization  provisions  of Statements is not anticipated to have a material
impact on the Trust's financial statements.  During 2002, the Trust will perform
the  first  of  the  required  impairment tests of goodwill and indefinite lived
intangible  assets  as  of  January  1, 2002 and has not yet determined what the
effect  of  these  tests  will  be on the earnings and financial position of the
Trust.

In  October  2001, the Financial Accounting Standards Board issued SFAS No. 144,
"Accounting  for the Impairment or Disposal of Long-Lived Assets, which replaces
SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived
Assets  to  be  Disposed of".  SFAS No. 144 provides updated guidance concerning
the  recognition  and  measurement  of  an  impairment loss for certain types of
long-lived  assets,  expands  the scope of a discontinued operation to include a
component  of  an  entity  and eliminates the current exemption to consolidation
when  control  over  a  subsidiary  is  likely  to be temporary. SFAS No. 144 is
effective  for  fiscal  years  beginning  after  December  15,  2001.

The  Trust will apply the new rules on accounting for the impairment or disposal
of  long-lived  assets  beginning  in  the  first  quarter of 2002, which is not
anticipated  to  have  an  impact on the Trust's earnings or financial position.

<PAGE>
------


                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                         PART I.  FINANCIAL INFORMATION


Item 2.  Management's Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of  Operations.
---------------

Certain  statements  in  this  quarterly  report  of AFG Investment Trust C (the
"Trust")  that  are  not historical fact constitute "forward-looking statements"
within  the  meaning of the Private Securities Litigation Reform Act of 1995 and
are  subject  to  a  variety  of risks and uncertainties.  There are a number of
important  factors  that  could  cause  actual results to differ materially from
those  expressed  in  any  forward-looking statements made herein. These factors
include, but are not limited to, the collection of the Trust's contracted rents,
the  realization of residual proceeds for the Trust's equipment, the performance
of  the  Trust's  non-equipment  assets,  and  future  economic  conditions.

The  Investment  Company  Act  of  1940  (the  "Act") places restrictions on the
capital  structure  and  business activities of companies registered thereunder.
The  Trust  has  active  business operations in the financial services industry,
primarily  equipment  leasing,  and  in  the  real  estate  industry through its
interests  in  EFG  Kirkwood LLC ("EFG Kirkwood") and EFG Kettle Development LLC
("Kettle  Valley"). The Trust does not intend to engage in investment activities
in  a  manner  or  to  an  extent that would require the Trust to register as an
investment  company  under  the  Act. However, it is possible that the Trust may
unintentionally  engage  in  an  activity or activities that may be construed to
fall within the scope of the Act. The Managing Trustee is engaged in discussions
with  the  staff  of the Securities and Exchange Commission regarding whether or
not  the  Trust may be an inadvertent investment company by virtue of its recent
acquisition activities. If the Trust was determined to be an investment company,
its  business  would  be  adversely  affected.  The  Act,  among  other  things,
prohibits  an  unregistered investment company from offering securities for sale
or  engaging  in  any business or interstate commerce.  The Managing Trustee has
consulted  counsel and believes that the Trust is not an investment company.  If
necessary,  the  Trust  intends  to  avoid being deemed an investment company by
disposing  of or acquiring certain assets that it might not otherwise dispose of
or  acquire.

The  events  of  September  11,  2001 and the slowing U.S. economy could have an
adverse  effect  on market values for the Trust's assets and the Trust's ability
to  negotiate  future  lease  agreements.  Notwithstanding  the  foregoing,  it
currently  is  not  possible for the Managing Trustee to determine the long-term
effects,  if  any, that these events may have on the economic performance of the
Trust's  equipment  portfolio.  Approximately  62%  of  the  Trust's  equipment
portfolio consists of commercial jet aircraft.  The events of September 11, 2001
adversely  affected  market demand for both new and used commercial aircraft and
weakened  the  financial  position  of most airlines.  While it is currently not
possible  for  the Managing Trustee to determine the ultimate long-term economic
consequences of these events to the Trust, the Managing Trustee expects that the
resulting decline in air travel will suppress market prices for used aircraft in
the  short term and could inhibit the viability of the airline industry.  In the
event  of  a  default  by  an  aircraft  lessee, the Trust could suffer material
losses.  At  September 30, 2001, the Trust has collected substantially all rents
owed from aircraft lessees.  In addition, through its membership interest in EFG
Kirkwood  LLC,  the  Trust  has  an  interest  in  two ski resorts that could be
adversely  affected  by potential declines in vacation travel resulting from the
events  of  September 11, 2001.  The Managing Trustee is monitoring developments
in  the  airline  and  resort industries and will continue to evaluate potential
implications  to  the  Trust's  financial  position  and  future  liquidity.

Segment  Reporting
------------------


The Trust has two principal operating segments: 1) Equipment Leasing and 2) Real
Estate  Ownership,  Development  &  Management.  The  Equipment  Leasing segment
includes the management of the Trust's equipment lease portfolio and the Trust's
interest  in MILPI Holdings, LLC ("MILPI").  MILPI owns MILPI Acquisition Corp.,
("MILPI  Acquisition")  which  owns  the majority interest in PLM International,
Inc.,  ("PLM")  an  equipment  leasing  and  asset management company.  The Real
Estate  segment includes the ownership, management and development of commercial
properties,  recreational  properties,  condominiums,  interval ownership units,
townhomes,  single  family  homes  and  land sales through the Trust's ownership
interests  in  EFG  Kirkwood  and  Kettle  Valley.

The  Trust's  reportable  segments  offer different products or services and are
managed  separately  because  each  requires  different operating strategies and
management  expertise.  There  are  no material intersegment sales or transfers.

Segment  information  for the three and nine months ended September 30, 2001 and
2000  is  summarized  below.

<TABLE>
<CAPTION>
                                             Three months ended     Nine months ended
                                                September 30,        September 30,

                                            2001         2000         2001         2000
<S>                                      <C>          <C>          <C>          <C>
Total Income:
   Equipment leasing                     $2,210,643   $3,379,909   $5,874,183   $8,543,226
   Real estate                             (599,367)    (588,235)    (283,133)    (216,612)
                                         -----------  -----------  -----------  -----------
     Total                               $1,611,276   $2,791,674   $5,591,050   $8,326,614
                                         ===========  ===========  ===========  ===========

Operating Expenses, Management Fees
  and Other Expenses:
   Equipment leasing                     $  272,073   $  220,694   $1,165,107   $  609,170
   Real estate                               40,354       20,395      112,225       59,009
                                         -----------  -----------  -----------  -----------
     Total                               $  312,427   $  241,089   $1,277,332   $  668,179
                                         ===========  ===========  ===========  ===========

Interest Expense:
   Equipment leasing                     $  431,725   $  571,392   $1,533,048   $1,850,212
   Real estate                                3,307       12,754       17,161       44,980
                                         -----------  -----------  -----------  -----------
     Total                               $  435,032   $  584,146   $1,550,209   $1,895,192
                                         ===========  ===========  ===========  ===========

Depreciation and Amortization Expense:
   Equipment leasing                     $  963,140   $  972,151   $2,894,389   $3,196,279
   Real estate                               16,450       16,450       49,350       49,350
                                         -----------  -----------  -----------  -----------
     Total                               $  979,590   $  988,601   $2,943,739   $3,245,629
                                         ===========  ===========  ===========  ===========

 Net Income (Loss)                       $ (115,773)  $  977,838   $ (180,230)  $2,517,614
                                         ===========  ===========  ===========  ===========
</TABLE>


Three  and  nine  months ended September 30, 2001 compared to the three and nine
--------------------------------------------------------------------------------
months  ended  September  30,  2000:
------------------------------------

Results  of  Operations
-----------------------

Equipment  Leasing
------------------

For  the  three  and  nine months ended September 30, 2001, the Trust recognized
lease revenue of $1,690,959 and $4,941,320, respectively, compared to $1,768,284
and  $5,948,971,  respectively,  for same periods in 2000. The decrease in lease
revenue from 2000 to 2001 resulted primarily from lease term expirations and the
sale  of equipment.  The level of lease revenue to be recognized by the Trust in
the  future  may be impacted by future reinvestment; however, the extent of such
impact  cannot  be  determined  at  this time. Future lease term expirations and
equipment  sales  will  result  in  a reduction in the lease revenue recognized.

The Trust's equipment portfolio includes certain assets in which the Trust holds
a  proportionate ownership interest.  In such cases, the remaining interests are
owned  by  an  affiliated equipment leasing program sponsored by Equis Financial
Group  Limited  Partnership  ("EFG").  Proportionate equipment ownership enables
the  Trust  to further diversify its equipment portfolio by participating in the
ownership of selected assets, thereby reducing the general levels of risk, which
could  result  from  a  concentration  in any single equipment type, industry or
lessee.  The  Trust  and  each  affiliate  individually report, in proportion to
their  respective  ownership  interests,  their  respective  shares  of  assets,
liabilities,  revenues,  and  expenses  associated  with  the  equipment.

In  June  2001,  the  Trust  and  certain  affiliated  investment  programs
(collectively,  the  "Reno  Programs")  executed  an agreement with the existing
lessee,  Reno  Air,  Inc.  ("Reno"), to early terminate the lease of a McDonnell
Douglas  MD-87  aircraft that had been scheduled to expire in January 2003.  The
Reno  Programs  received  an  early termination fee of $840,000 and a payment of
$400,000  for  certain  maintenance required under the existing lease agreement.
The Trust's share of the early termination fee was $74,424, which was recognized
as  lease  revenue during the nine months ended September 30, 2001 and its share
of  the  maintenance  payment  was  $35,440,  which  is accrued as a maintenance
obligation  at  September 30, 2001.  Coincident with the termination of the Reno
lease, the aircraft was re-leased to Aerovias de Mexico, S.A. de C.V. for a term
of  four  years.  The  Reno  Programs  will receive rents of $6,240,000 over the
lease  term,  of  which  the  Trust's  share  is  $552,864.

Interest  income  for  the  three  and  nine months ended September 30, 2001 was
$22,425  and  $126,411,  respectively,  compared  to  $167,801  and  $506,033,
respectively,  for  the  same  periods  in  2000.  Interest  income is typically
generated  from  the temporary investment of rental receipts and equipment sales
proceeds  in  short-term  instruments.  The  amount of future interest income is
expected  to  fluctuate as a result of changing interest rates and the amount of
cash  available  for  investment  among  other  factors.

During  the three and nine months ended September 30, 2001, the Trust sold fully
depreciated  equipment  and  equipment  having  a  net  book  value  of $60,151,
respectively,  to existing lessees and third parties.  These sales resulted in a
net  gain,  for  financial  statement  purposes,  of  $7,634  and  $121,633,
respectively.

During the three and nine month periods ended September 30, 2000, the Trust sold
equipment  having a net book value of $1,359,354 and $1,408,764, respectively to
existing  lessees  and  third  parties.  These sales resulted in a net gain, for
financial  statement  purposes,  of  $1,409,938  and  $1,761,928,  respectively.

It  cannot  be determined whether future sales of equipment will result in a net
gain or a net loss to the Trust, as such transactions will be dependent upon the
condition  and type of equipment being sold and its marketability at the time of
sale.  In  addition, the amount of gain or loss reported for financial statement
purposes  is  partly  a  function  of  the  amount  of  accumulated depreciation
associated  with  the  equipment  being  sold.

The  ultimate  realization  of  residual  value  for  any  type  of equipment is
dependent  upon  many  factors,  including  EFG's  ability  to sell and re-lease
equipment.  Changing market conditions, industry trends, technological advances,
and  many  other  events can converge to enhance or detract from asset values at
any  given  time.  EFG  attempts  to  monitor these changes in order to identify
opportunities  which  may  be  advantageous to the Trust and which will maximize
total  cash  returns  for  each  asset.

The  total  economic  value  realized  upon  final  disposition of each asset is
comprised  of all primary lease term revenue generated from that asset, together
with its residual value.  The latter consists of cash proceeds realized upon the
asset's  sale  in  addition to all other cash receipts obtained from renting the
asset on a re-lease, renewal or month-to-month basis.  The Trust classifies such
residual  rental payments as lease revenue.  Consequently, the amount of gain or
loss  reported  in the financial statements is not necessarily indicative of the
total  residual  value  the  Trust  achieved  from  leasing  the  equipment.

During  the  nine  months  ended  September  30, 2000, the Trust sold investment
securities  having  a book value of $128,529, resulting in a gain, for financial
statement  purposes,  of  $86,079.

On March 8, 2000, the Trust and three affiliated trusts entered into a guarantee
agreement  whereby  the  trusts,  jointly  and severally, guaranteed the payment
obligations  under  a  master lease agreement between Echelon Commercial LLC, as
lessee,  and Heller Affordable Housing of Florida, Inc., and two other entities,
as  lessor.  (See  Note  11)  During  the  quarter ended September 30, 2001, the
requirements  of the guarantee agreement were met and the Trust received payment
for  all  outstanding  amounts  totaling  $224,513,  including $89,583 of income
related  to  the  guarantee  agreement  recognized  during the nine months ended
September  30, 2001.  During the nine months ended September 30, 2000, the Trust
received an upfront cash fee of $175,400 and recognized total income of $240,215
from  the  guarantee.  The  guarantee  fee  is  reflected as Other Income on the
accompanying  Statement  of  Operations.  The  Trust  has no further obligations
under  the  guarantee  agreement.

Depreciation  expense  for  the three and nine month periods ended September 30,
2001  was  $950,418  and  $2,866,178  compared  to  $972,151  and  $3,196,279,
respectively,  for  the same periods in 2000.  For financial reporting purposes,
to the extent that an asset is held on primary lease term, the Trust depreciates
the difference between (i) the cost of the asset and (ii) the estimated residual
value  of  the  asset  on a straight-line basis over such term.  For purposes of
this  policy,  estimated residual values represent estimates of equipment values
at  the  date  of primary lease expiration.  To the extent that an asset is held
beyond  its  primary lease term, the Trust continues to depreciate the remaining
net  book value of the asset on a straight-line basis over the asset's remaining
economic  life.

Interest  expense  for the three and nine month periods ended September 30, 2001
was  $431,725 and $1,533,048, respectively, compared to $571,392 and $1,850,212,
respectively,  for  the same periods in 2000.  Interest expense will decrease in
the  future  as  the  principal  balance of notes payable is reduced through the
application  of  rent  receipts  to  outstanding  debt.

Management  fees  related to equipment leasing were $23,605 and $168,455 for the
three  and nine month periods ended September 30, 2001 and $79,447 and $270,337,
respectively,  for the same periods in 2000.  Management fees are based on 5% of
gross  lease revenue generated by operating leases and 2% of gross lease revenue
generated  by  full payout leases, subject to certain limitations.  In addition,
management  fees  include  a  fee  of  1%  of  the  cost of the MILPI interests.

Operating  expenses  were  $248,468 and $996,652 during the three and nine month
periods  ended  September  30,  2001  compared  to  $141,247  and  $338,833,
respectively,  for  the  same  periods  in  2000.  In  2001,  operating expenses
included  approximately  $155,000  for  ongoing  legal matters and approximately
$262,000  for  remarketing  costs  related to the re-lease of aircraft leased to
Scandinavian  Airlines  System  ("SAS")  and  Aerovias  de Mexico, S.A. de C.V..
Operating  expenses  also included approximately $114,000 of costs reimbursed to
EFG  as  a result of the successful acquisition of the PLM common stock by MILPI
Acquisition, as discussed below.  In conjunction with the acquisition of the PLM
common  stock,  EFG  became  entitled  to recover certain out of pocket expenses
which  it had previously incurred. Other operating expenses consist primarily of
administrative  charges,  professional  service  costs,  such as audit and legal
fees,  as well as printing, distribution and remarketing expenses. The amount of
future  operating  expenses  cannot  be  predicted with certainty; however, such
expenses  are  usually higher during the acquisition and liquidation phases of a
trust.  Other  fluctuations typically occur in relation to the volume and timing
of  remarketing  activities.

During  the  three  and nine months ended September 30, 2001, the Trust recorded
income  of  $474,256  and $584,314, respectively, from its ownership interest in
MILPI.  This  income  represents  the  Trust's  share of the net income of MILPI
recorded  under the equity method of accounting.  The Trust recorded $12,722 and
$28,211,  respectively,  of  amortization  expense for the three and nine months
ended  September 30, 2001, which related to the goodwill recorded at the time of
the  acquisition  of  the PLM common stock by MILPI Acquisition.  (See Note 8 to
the  financial  statements).

The  Trust's  income  from  MILPI results from MILPI's indirect ownership of PLM
common  stock  acquired in February 2001.  PLM is an equipment leasing and asset
management  company.

During  the  three  and  nine  months  ended  September 30, 2001, PLM recognized
operating  revenues  of  approximately  $3,434,000 and approximately $8,770,000,
respectively.  Revenues  for  the  three  months  ended  September  30, 2001 are
comprised  primarily  of  management  fees  of  approximately  $1,375,000  and
$1,847,000  of  acquisition  and  lease negotiation fees.  Revenues for the nine
months  ended  September  30, 2001 are comprised primarily of management fees of
approximately  $4,362,000,  acquisition  and  lease  negotiation  fees  of
approximately  $2,032,000  and operating lease income of approximately $695,000.

During  the  three and nine months ended September, 30, 2001, PLM incurred total
operating  expenses  of  approximately  $1,216,000 and approximately $5,665,000,
respectively.  Operating  expenses for the three months ended September 30, 2001
are  comprised primarily of general and administrative expenses of approximately
$658,000  and  operations  support  expenses of approximately $453,000.  For the
nine months ended September 30, 2001, operating expenses are comprised primarily
of  general  and  administrative  expenses  of  approximately  $4,054,000  and
operations  support  expenses  of approximately $1,092,000, which include salary
and  office-related  expenses  for  operational  activities.

During  the three and nine months ended September 30, 2001, PLM recognized other
income  of  approximately  $101,000  and  $270,000,  approximately,  comprised
primarily  of  interest income earned on investments.  During the three and nine
months  ended  September  30,  2001,  PLM  also  incurred  income tax expense of
approximately  $882,000  and  $1,304,000,  respectively.


Real  Estate
------------

Management  fees  for  non-equipment  assets  were  $40,354  and  $112,225,
respectively, for the three and nine months ended September 30, 2001 compared to
$20,395  and  $59,009,  respectively,  for the same periods in 2000.  Management
fees  for  non-equipment  assets,  excluding  cash,  are 1% of such assets under
management.

Interest  expense  on  a  note payable related to the Trust's acquisition of its
interest  in  Kettle  Valley was $3,307 and $17,161, respectively, for the three
and  nine  months  ended  September  30,  2001  compared to $12,754 and $44,980,
respectively,  for  the same periods in 2000.  Interest expense will decrease in
the  future  as  payments  reduce the outstanding principal balance of the note.

The  Trust  has a 50.6% ownership interest in Kettle Valley.  Kettle Valley is a
joint venture among the Trust and an affiliated trust, formed for the purpose of
acquiring  a  49.9%  indirect ownership interest in a real estate development in
Kelowna, British Columbia in Canada.  AFG ASIT Corporation manages Kettle Valley
and the development is managed by a Canadian affiliate of EFG (See Note 6 to the
financial  statements).

For  the  three  and  nine months ended September 30, 2001, the Trust recorded a
loss  of  $13,455  and  $521,998, respectively, compared to $15,117 and $88,410,
respectively, for the same periods of 2000 from its ownership interest in Kettle
Valley.  The  losses  represent  the  Trust's  share of the net losses of Kettle
Valley  recorded  under the equity method of accounting.  In addition, the Trust
recorded  amortization expense of $16,450 and $49,350, respectively, during each
of  the  three  and  nine  month  periods  ended September 30, 2001 and 2000, in
connection  with  its  interest  in Kettle Valley.  (See Note 6 to the financial
statements.)

Kettle  Valley  is a real estate development company located in Kelowna, British
Columbia,  Canada.  The  project,  which  is  being  developed  by Kettle Valley
Development  Limited  Partnership,  consists  of approximately 280 acres of land
that  is  zoned for 1,120 residential units in addition to commercial space.  To
date,  108  residential  units  have been constructed and sold and 10 additional
units  are  under  construction.

During  the  three  and  nine  months  ended  September  30, 2001, Kettle Valley
recorded  revenues  of  $766,593  and  $1,951,907,  respectively,  compared  to
$1,162,731  and  $2,658,316,  respectively,  for  the same periods in 2000.  The
decrease  in revenues for both the three and nine month periods is the result of
a  decrease  in  the  number  of  lot  and  home  sales.

Kettle  Valley  incurred  total  expenses  of $798,006 and $2,746,612 during the
three  and  nine  months  ended  September  30,  2001, respectively, compared to
$1,223,447  and  $3,077,402,  respectively, for the same periods in 2000.  Total
expenses  decreased  $425,441 and $330,790, respectively, for the three and nine
months  ended  September  30, 2001 as compared to the same periods in 2000.  The
decrease  in  expenses is the result of a decrease in the number of lot and home
sales  discussed  above.

The  Trust  also  has  an ownership interest in EFG Kirkwood.  EFG Kirkwood is a
joint  venture among the Trust, certain affiliated Trusts and Semele Group, Inc.
("Semele")  and  is managed by AFG ASIT Corporation. EFG Kirkwood is a member in
two  joint  ventures,  Mountain  Resort  Holdings  LLC  ("Mountain  Resort") and
Mountain  Springs  Resort LLC ("Mountain Springs"). (See Note 7 to the financial
statements.)

Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest in the Purgatory Ski resort in Durango, Colorado.

For  the  three  and  nine  month  periods  ended  September 30, 2001, the Trust
recorded  a  loss  of  $585,912  and  income of $238,865, respectively, from its
ownership  interest  in  EFG  Kirkwood.  For  the  three  and  nine months ended
September  30,  2000,  the  Trust  recorded  a  loss  of  $573,118 and $128,202,
respectively,  from  its  ownership interest in EFG Kirkwood. This income (loss)
represents  the  Trust's share of the net income (loss) of EFG Kirkwood recorded
under  the  equity  method  of  accounting.  Due  to  the seasonal nature of EFG
Kirkwood's  operations, the financial results of the three and nine months ended
September  30,  2001  and  2000  may  not  be  indicative  of  future  periods

Mountain Resort is primarily a ski and mountain recreation resort with more than
2,000 acres of terrain, located approximately 32 miles south of Lake Tahoe.  The
resort  receives  approximately  70% of its revenues from winter ski operations,
primarily ski, lodging, retail and food and beverage services with the remainder
of  the  revenues  generated  from summer outdoor activities, including mountain
biking,  hiking  and  other  activities.  Other operations include a real estate
development  division, which has developed and is managing a 40-unit condominium
residential  and commercial building, an electric and gas utility company, which
operates  as  a regulated utility company and provides electric and gas services
to  the  Kirkwood  community,  and  a  real  estate  brokerage  company.

During  the nine months ended September 30, 2001, Mountain Resort recorded total
revenues  of  $22,378,487  compared  to $21,649,975 for the same period in 2000.
The  increase  in  total revenues from 2000 to 2001 of $728,512 is the result an
increase  in  ski-related  revenues  offset by a decrease in residential-related
revenues.

Ski-related  revenues  and  other  operations  revenues  increased approximately
$2,350,000  and  approximately $927,000, respectively, for the nine months ended
September  30,  2001  compared  to  the  same  period  in 2000.  The increase in
ski-related revenues resulted from improved weather conditions during the winter
season,  which  attracted  more skiers.  Improved weather conditions resulted in
the  resort supporting approximately 260,000 skiers for the nine months ended in
2001  as  compared  to  181,000  for  the  same  period  in  2000.

Residential-related  revenues  decreased  approximately  $2,549,000 for the nine
months  ended 2001 as compared to 2000.  Construction was completed on a 40-unit
condominium  residential  and  commercial  building  in  December  1999 and as a
result,  a  significant number of condominium sales closed in January 2000.  For
the  nine  months  ended  September  30,  2001,  residential  revenues  were
approximately  $513,000  compared  to  residential  revenues  of  approximately
$3,062,000  for  the  same  period  in  2000.

During  the  nine  months  ended  September  30,  2001,  Kirkwood recorded total
expenses of $21,535,057 compared to $20,322,407 for the same period in 2000. The
increase  in  total  expenses  of  $1,212,650 from 2000 to 2001 is the result an
increase  in  ski-related  expenses  offset by a decrease in residential-related
expenses.

Ski-related  expenses  and  other  operations  expenses  increased approximately
$2,392,000  and approximately $555,000, respectively, as a result of an increase
in  ski-related  revenues  and  other  operations  revenues, as discussed above.
Residential-related expenses decreased approximately $1,734,000 as a result of a
decrease  in  cost of sales from condominium units sold in the nine months ended
September 30, 2001 compared to the same period in 2000, as also discussed above.

Purgatory  Ski  Resort  ("Purgatory")  is  a  ski and mountain recreation resort
covering 2,500 acres, situated on 40 miles of terrain with 75 ski trails located
near  Durango,  Colorado.  Purgatory  receives the majority of its revenues from
winter  ski  operations,  primarily  ski,  lodging, retail and food and beverage
services,  with  the  remainder  of  revenues  generated  from  summer  outdoor
activities,  such  as  alpine  sliding  and  mountain  biking.

During  the  nine  months  ended  September  30,  2001, Purgatory recorded total
revenues of $12,014,674 compared to $9,693,552 for the same period of 2000.  The
increase  in  total  revenues  from  2000 to 2001 of $2,321,122 is the result of
improved  weather  conditions  during  the  winter  season,which  attracted more
skiers.  Improved  weather  conditions  resulted  in  the  resort  supporting
approximately  240,000  skiers  for  the  nine  months  ended September 30, 2001
compared  to  176,000  skiers  in  the  same  period  of  2000.

Total  expenses  were  $11,542,289  for the nine months ended September 30, 2001
compared  to  $11,388,497  for  the  same period in 2000.  The increase in total
expenses  for  the  nine  months  ended  September 30, 2001 compared to the same
period  in  2000 of $153,792 is a result of an increase in operating expenses of
$423,771, due to an increase in the number of skiers, discussed above, offset by
a  decrease  in  financing  costs  of  $296,979.


Liquidity  and  Capital  Resources  and  Discussion  of  Cash  Flows
--------------------------------------------------------------------

The  Trust  by  its  nature  is  a  limited  life entity.  The Trust's principal
operating  activities  derive  from asset rental transactions.  Accordingly, the
Trust's  principal  source of cash from operations is provided by the collection
of  periodic  rents.  These  cash  inflows  are  used  to  satisfy  debt service
obligations  associated  with  leveraged  leases, and to pay management fees and
operating  costs.  Operating activities generated net cash inflows of $2,586,288
and  $4,791,035  for  the  nine  months  ended  September  30,  2001  and  2000,
respectively.  Future renewal, re-lease and equipment sale activities will cause
a  decline  in  the Trust's lease revenue and corresponding sources of operating
cash.  Expenses associated with rental activities, such as management fees, also
will  decline  as  the  Trust  remarkets  its  equipment.  The  amount of future
interest  income is expected to fluctuate as a result of changing interest rates
and  the  level  of  cash  available  for  investment,  among  other  factors.

At  lease  inception,  the  Trust's  equipment  was  leased  by  a  number  of
creditworthy,  investment-grade  companies  and,  to  date,  the  Trust  has not
experienced any material collection problems and has not considered it necessary
to  provide  an  allowance  for  doubtful  accounts.  Notwithstanding a positive
collection  history, there is no assurance that all future contracted rents will
be  collected  or  that  the  credit  quality  of  the  Trust's  leases  will be
maintained.  The credit quality of an individual lease may deteriorate after the
lease  is  entered  into.  Collection  risk  could  increase  in  the  future,
particularly as the Trust remarkets its equipment and enters re-lease agreements
with  different  lessees.  The  Managing  Trustee  will continue to evaluate and
monitor  the  Trust's  experience in collecting accounts receivable to determine
whether  a  future  allowance  for  doubtful  accounts  may  become appropriate.

At September 30, 2001, the Trust was due aggregate future minimum lease payments
of  $11,392,427  from  contractual lease agreements (see Note 4 to the financial
statements),  a  portion of which will be used to amortize the principal balance
of  notes  payable  of  $23,332,484  (see  Note 10 to the financial statements).
Additional  cash  inflows  will  be realized from future remarketing activities,
such  as  lease  renewals  and  equipment  sales, the timing and extent of which
cannot  be  predicted  with certainty.  This is because the timing and extent of
equipment  sales is often dependent upon the needs and interests of the existing
lessees.  Some  lessees  may choose to renew their lease contracts, while others
may elect to return the equipment.  In the latter instances, the equipment could
be  re-leased  to  another  lessee  or sold to a third party.  Accordingly, as a
greater  level of the Trust's equipment assets become available for remarketing,
the  cash  flows  of  the  Trust  will  become  less  predictable.

Cash  expended  for  asset  acquisitions  and  cash realized from asset disposal
transactions  are  reported  under  investing  activities  on  the  accompanying
Statement  of  Cash  Flows.

In  December  2000,  the  Trust  and  three affiliated Trusts (collectively, the
"Trusts")  formed  MILPI,  which  formed  MILPI  Acquisition,  a  wholly  owned
subsidiary  of  MILPI.  The  Trusts  collectively  paid  $1.2  million for their
membership  interests  in  MILPI  and  MILPI  purchased  the  shares  of  MILPI
Acquisition  for  an  aggregate  purchase  price of $1.2 million at December 31,
2000.  MILPI  Acquisition  entered into a definitive agreement (the "Agreement")
with  PLM, an equipment leasing and asset management company, for the purpose of
acquiring  up to 100% of the outstanding common stock of PLM, for an approximate
purchase  price  of  up  to  $27 million. In connection with the acquisition, on
December  29,  2000,  MILPI Acquisition commenced a tender offer to purchase any
and  all  of  PLM's  outstanding  common  stock.

Pursuant  to the cash tender offer, MILPI Acquisition acquired approximately 83%
of  the  PLM  common  stock  in  February  2001  for  a  total purchase price of
approximately $21.7 million. Under the terms of the Agreement, with the approval
of  the  holders  of  50.1%  of  the  outstanding  common  stock  of  PLM, MILPI
Acquisition  will merge into PLM, with PLM being the surviving entity. PLM filed
a  proxy  statement  with  the Securities and Exchange Commission (the "SEC") on
February 9, 2001 for a special meeting of its shareholders to vote on the merger
proposal.  Because  MILPI  Acquisition  owns approximately 83% of the PLM common
stock,  its  vote alone would be sufficient to assure the approval of the merger
proposal  at  the special meeting and MILPI has agreed to vote all of its shares
in  favor  of the merger proposal. Once the merger is approved, the Trusts would
then  jointly own 100% of the outstanding common stock of PLM through their 100%
interest  in  MILPI.  However, completion of the SEC staff's review of the proxy
statement  for  approval  of the merger is dependent in part on the satisfactory
resolution  of  the  Trust's  discussions  with the staff regarding its possible
status  as  an  inadvertent  investment  company. If the merger is approved, the
Trusts  may  be  required  to  provide an additional $4.4 million to acquire the
remaining  approximate  17%  of  PLM's  outstanding  common  stock.

The  Trust  has  a  34%  membership interest in MILPI having an original cost of
$7,732,783.  The  cost  of  the  Trust's  interest  in  MILPI  reflects  MILPI
Acquisition's  cost  of  acquiring the common stock of PLM, including the amount
paid  for  the  shares  tendered  of  $7,403,746, a 1% acquisition fee paid to a
wholly-owned  subsidiary  of Semele of $74,037 and capitalized transaction costs
of  $255,000.  The capitalized transaction costs will be reimbursed by the Trust
to  MILPI  and  are  included  in  Accrued  Liabilities  -  Affiliates  on  the
accompanying  Statement of Financial Position at September 30, 2001.  During the
quarter  ended  June  30,  2001,  the  Trusts obtained additional information to
refine  the  estimate  of  fair  values  the  underlying  net assets of MILPI at
February  9,  2001.  The  Trust's  cost  basis  in  its  interest  in  MILPI was
approximately  $356,000  greater  than its equity interest in the underlying net
assets  of  MILPI at February 9, 2001. This difference is being amortized over a
period  of 7 years beginning March 1, 2001.  The amount amortized is included as
an  offset  to  Interest  in  MILPI and was $28,211 during the nine months ended
September  30, 2001. The Trust's ownership interest in MILPI is accounted for on
the  equity  method,  as  discussed  above.

Equis  II  Corporation  has  voting  control of the Trusts and owns the Managing
Trustee  of  the  Trusts.  Semele  owns  Equis II Corporation. Mr. Engle and Mr.
Coyne,  who  are  a director and an officer of the Trust, respectively, are also
officers  and  directors of, and own significant stock in, Semele. Mr. Engle and
Mr.  Coyne  are  officers  and  directors  of  MILPI  Acquisition.

During the nine months ended September 30, 2000, the Trust expended $822,750 for
its  interest  in  EFG  Kirkwood  (see  Note  7 to the financial statements) and
$123,220  for other investments. During the nine months ended September 30, 2001
and  2000,  the  Trust  realized  net  cash proceeds from equipment disposals of
$181,784  and  $3,170,692,  respectively.  Future inflows of cash from equipment
disposals  will vary in timing and amount and will be influenced by many factors
including,  but  not  limited to, the frequency and timing of lease expirations,
the  type  of  equipment  being  sold,  its condition and age, and future market
conditions.  The  Trust  also  realized  proceeds  from  the  sale of investment
securities  of  $214,608  during  the  nine  months  ended  September  30, 2000.

The  Trust  has a 50.6% ownership interest in Kettle Valley.  Kettle Valley is a
joint venture among the Trust and an affiliated trust, formed for the purpose of
acquiring  a  49.9%  indirect ownership interest in a real estate development in
Kelowna, British Columbia in Canada.  AFG ASIT Corporation manages Kettle Valley
and the development is managed by a Canadian affiliate of EFG (See Note 6 to the
financial  statements).

The  Trust  also  has  an ownership interest in EFG Kirkwood.  EFG Kirkwood is a
joint  venture  among  the  Trust,  certain  affiliated Trusts and Semele and is
managed by AFG ASIT Corporation. EFG Kirkwood is a member in two joint ventures,
Mountain Resort Holdings LLC ("Mountain Resort") and Mountain Springs Resort LLC
("Mountain  Springs").  (See  Note  7  to  the  financial  statements.)

Mountain  Resort,  through four wholly owned subsidiaries, owns and operates the
Kirkwood  Mountain Resort, a ski resort located in northern California, a public
utility that services the local community, and land that is held for residential
and commercial development. Mountain Springs, through a wholly owned subsidiary,
owns  a  controlling  interest in the Purgatory Ski resort in Durango, Colorado.

The risks generally associated with real estate include, without limitation, the
existence of senior financing or other liens on the properties, general or local
economic  conditions,  property  values, the sale of properties, interest rates,
real  estate  taxes,  other  operating  expenses,  the  supply  and  demand  for
properties  involved,  zoning  and environmental laws and regulations, and other
governmental  rules.

The  Trust's  involvement  in  real estate development also introduces financial
risks,  including  the potential need to borrow funds to develop the real estate
projects.  While  the  Trust's management presently does not foresee any unusual
risks  in  this  regard,  it  is possible that factors beyond the control of the
Trust,  its  affiliates  and joint venture partners, such as a tightening credit
environment,  could  limit  or  reduce  its  ability  to  secure adequate credit
facilities at a time when they might be needed in the future. Alternatively, the
Trust  could  establish joint ventures with other parties to share participation
in  its  development  projects.

Ski  resorts  are subject to a number of risks, including weather-related risks.
The  ski  resort business is seasonal in nature and insufficient snow during the
winter  season  can  adversely  effect the profitability of a given resort. Many
operators  of  ski resorts have greater resources and experience in the industry
than  the  Trust,  its  affiliates  and  its  joint  venture  partners.

Recent  changes  in  economic  condition  of the airline industry have adversely
affected  the  demand  for and market values for commercial jet aircraft.  These
changes  could  adversely  affect  the  operations of the Trust and the residual
value  of  the  commercial  jet  aircraft.  Currently, all of the commercial jet
aircraft  in  which the Trust has a proportionate ownership interest are subject
to  contracted  lease  agreements.

The  Trust  obtained  long-term  financing  in connection with certain equipment
leases and its interest in Kettle Valley.  The originations of such indebtedness
and  the  subsequent  repayments  of  principal  are  reported  as components of
financing  activities.  At  September  30,  2001, the Trust had debt obligations
outstanding totaling $23,332,484. These notes will be partially amortized by the
remaining  contracted  lease payments.  However, the Trust has a balloon payment
obligation  of  $16,193,280  at  the expiration of the lease term related to its
interest  in  an  aircraft  leased  to  SAS  in  December  2003.

In  June  2001,  the  Trust  and  certain  affiliated  investment  programs
(collectively,  the  "Reno  Programs")  executed  an agreement with the existing
lessee, Reno, to early terminate the lease of a McDonnell Douglas MD-87 aircraft
that  had  been  scheduled  to  expire  in  January  2003.  Coincident  with the
termination of the Reno lease, the aircraft was re-leased to Aerovias de Mexico,
S.A.  de  C.V.  for  a term of four years (see Results of Operations).  The Reno
Programs  executed  a  debt  agreement  with  a new lender collateralized by the
aircraft  and assignment of the Aerovias de Mexico, S.A. de C.V. lease payments.
The  Reno  Programs  received  debt proceeds of $5,316,482, of which the Trust's
share  was  $471,032.  The  Trust  used  the  new debt proceeds and a portion of
certain  other  receipts  from  Reno  to  repay  the  outstanding balance of the
existing  indebtedness  related to the aircraft of $493,137 and accrued interest
and  fees  of  $7,347.

The  Managing  Trustee  evaluated  and  pursued  a  number  of  potential  new
acquisitions, several of which the Managing Trustee concluded had market returns
that  it  believed  were  less  than  adequate  given the potential risks.  Most
transactions  involved  the  equipment leasing, business finance and real estate
development  industries.  Although  the  Managing Trustee intends to continue to
evaluate  additional new investments, it anticipates that the Trust will be able
to  fund  these  new investments with cash on hand or other sources, such as the
proceeds  from  future  asset  sales  or refinancing and new indebtedness.  As a
result, the Trust declared a special cash distribution during the fourth quarter
of  1999  to  the  Trust  Beneficiaries  totaling $15,200,000, which was paid in
January  2000.

After  the  special  distribution  in  January  2000,  the  Trust  adopted a new
distribution  policy  and  suspended  the  payment  of  regular  monthly  cash
distributions.  Looking  forward, the Managing Trustee presently does not expect
to  reinstate  cash  distributions  until expiration of the Trust's reinvestment
period  in December 2002; however, the Managing Trustee periodically will review
and  consider  other  one-time  distributions.  In  addition to maintaining sale
proceeds  for  reinvestment,  the  Managing  Trustee expects that the Trust will
retain  cash  from  operations  to  fully  retire  its  indebtedness and for the
continued maintenance of the Trust's assets.  The Managing Trustee believes that
this  change in policy is in the best interests of the Trust over the long term.

Historically,  cash  distributions  to  the  Managing  Trustee,  the  Special
Beneficiary and the Beneficiaries had been declared and generally paid within 45
days  following  the  end  of  each  calendar month.  No cash distributions were
declared  for either of the nine month periods ended September 30, 2001 or 2000.
In  any  given year, it is possible that Beneficiaries will be allocated taxable
income  in  excess of distributed cash. This discrepancy between tax obligations
and  cash  distributions  may or may not continue in the future, and cash may or
may not be available for distribution to the Beneficiaries adequate to cover any
tax  obligation.  The  Trust Agreement requires that sufficient distributions be
made  to  enable  the  Beneficiaries  to  pay any state and federal income taxes
arising  from  any  sale  or  refinancing  transactions,  subject  to  certain
limitations.

Cash  distributions  when  paid  to the Participants generally consist of both a
return  of  and a return on capital. Cash distributions do not represent and are
not  indicative  of  yield  on  investment. Actual yield on investment cannot be
determined  with  any  certainty  until  conclusion  of  the  Trust  and will be
dependent  upon the collection of all future contracted rents, the generation of
renewal and/or re-lease rents, the residual value realized for each asset at its
disposal  date,  and the performance of the Trust's non-equipment assets. Future
market  conditions,  technological  changes,  the  ability  of EFG to manage and
remarket  the  equipment, and many other events and circumstances, could enhance
or  detract from individual yields and the collective performance of the Trust's
equipment  portfolio.  The ability of the Managing Trustee and its affiliates to
develop  and  profitably manage its real estate assets and its interest in MILPI
will  impact  the  Trust's  overall  performance.

In  the  future,  the  nature of the Trust's operations and principal cash flows
will shift from rental receipts to equipment sale proceeds.  As this occurs, the
Trust's cash flows resulting from equipment investments may become more volatile
in  that  certain of the Trust's equipment leases will be renewed and certain of
its  assets  will  be  sold.  In some cases, the Trust may be required to expend
funds  to refurbish or otherwise improve the equipment being remarketed in order
to  make  it  more  desirable  to  a potential lessee or purchaser.  The Trust's
Advisor,  EFG, and the Managing Trustee will attempt to monitor and manage these
events in order to maximize the residual value of the Trust's equipment and will
consider these factors, in addition to new investment activities, the collection
of  contractual rents, the retirement of scheduled indebtedness, and the Trust's
future  working  capital  requirements, in establishing the amount and timing of
future  cash  distributions.

In  accordance  with the Trust Agreement, upon the dissolution of the Trust, the
Managing  Trustee will be required to contribute to the Trust an amount equal to
any  negative  balance,  which  may  exist in the Managing Trustee's tax capital
account.  At  December 31, 2000, the Managing Trustee had a negative tax capital
account  balance  of  $165,559.  No  such requirement exists with respect to the
Special  Beneficiary.



<PAGE>
                             AFG INVESTMENT TRUST C

                                    FORM 10-Q

                           PART II.  OTHER INFORMATION



<TABLE>
<CAPTION>



<S>           <C>

  Item 1.     Legal Proceedings
  .           Response:  None

  Item 2.     Changes in Securities
  .           Response:  None

  Item 3.     Defaults upon Senior Securities
  .           Response:  None

  Item 4.     Submission of Matters to a Vote of Security Holders
  .           Response:  None

  Item 5.     Other Information
  .           Response:  None

  Item 6(a).  Exhibits
  .           Response:  None

  Item 6(b).  Reports on Form 8-K
  .           Response:  None
</TABLE>




<PAGE>

                                 SIGNATURE PAGE




Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.



                             AFG Investment Trust C


By:         AFG  ASIT  Corporation,  a  Massachusetts
              corporation  and  the  Managing  Trustee  of
              the  Registrant.


By:        /s/  Michael  J.  Butterfield
           -----------------------------
             Michael  J.  Butterfield
             Treasurer  of  AFG  ASIT  Corporation
             (Duly  Authorized  Officer  and
             Principal  Financial  and  Accounting  Officer)


Date:     November  19,  2001
          -------------------